ICICI Bank takes over 275 acres from Jaiprakash Associates

ICICI Bank takes over 275 acres from Jaiprakash Associates

In order to reduce the bank’s exposure to the company and also lessen JAL’s debt servicing obligation to a more manageable level, ICICI took over about 275 acres, worth an estimated Rs 1,500-1,800 crore from the flagship company of the Jaypee Group, Jaiprakash Associates Ltd. In Noida & Greater Noida.

At the end of March 2015, ICICI Bank’s total exposure to JAL was Rs 6,600 crore. “The move was required because the company was unable to service its debt obligations on a quarterly basis,” a source familiar with the development said. While the company has been trying to reduce its debt burden, The standalone debt of JAL is reportedly around Rs 28,000 crore and while the consolidated debt of JAL and its subsidiaries  is close to Rs 61,000 crore.

Of the 275 acres that the Bank has acquired, 250 acres are on the Yamuna Expressway, 20 acres are in the Jaypee Sports City in Greater Noida and the remaining 4-5 acres are in the prime Jaypee Wish Town on the Noida-Greater Noida Expressway. Real estate experts in Noida and Greater Noida peg the value of these three land parcels at around Rs 1,500-1,800 crore.