ICICI Bank offloads Kingfisher debt
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ICICI Bank has offloaded its INR430 crore debt exposure in Kingfisher Airlines to a debt fund of Srei Venture Capital (SVCL), the fund management arm of Kolkata-based Srei Infrastructure Fianance. The loan has been sold by the private bank along with the collateral that comprised shares of UB group’s liquor company, sales of which will help Srei generate steady revenue from the asset.
A Srei official told the Times of India, “The fund saw an opportunity in the securities and commensurate returns being offered for this proposal. India Global Competitive fund of SVCL has bought the exposure.” The official also clarified that the loan would not be in the books of Srei Infrastructure Finance. When contacted, an ICICI Bank spokesperson admitted that it has recovered the entire debt exposure to Kingfisher Airlines. Meanwhile, Vijay Mallya’s stake in the airline has now dipped 35.6% following conversion of warrants issued to LKP Finance into equity.