INDIA BUSINESS WORLD - March 16^th - March 31^th - 2008

ICICI, JAYPEE INFRA IN RS 1,150-CR DEAL

ICICI Bank entered into a Rs 1,150-crore equitycum-debt deal with Jaypee Infratech, which is to build and operate the 165-km, six-lane Taj Expressway linking Noida and Agra. The bank has decided to pick up 1% stake in Jaypee Infratech for Rs 250 crore, pegging the valuation of the company at Rs 25,000 crore. In addition, the bank will provide Rs 900 crore as long-term loan to the infrastructure company. Last year, ICICI Bank’s private equity arm had been in discussions with Jaypee Infratech to pick up a stake in the company. A senior Jaypee official confirmed that negotiations had taken place with ICICI Venture to buy a 1% direct stake and an additional 9% through convertible debentures. However, the discussions didn’t bear fruit then.