IIFCL Fund to be operative soon
The Public sector India Infrastructure Finance Company Limited (IIFCL) along with the Asian Development Bank (ADB) is planning a USD one billion Infrastructure Debt fund for which it had sought the approval of Securities and Exchanges Board of India (SEBI), a senior official of IIFCL said today.
IIFCL Executive Director HarshKumar Banatwala told UNI here that the Company would contribute Rs.1500 crore to the Fund that would operate on Mutual Fund route and aimed to enhance the Bond market in the country.
He said the company had also entered a subbordinate debt market that would help Banks to offload some of theirproblematic assets. The takeover model for which IIFCL had already formed an Asset Management Comepany had already indentified assets worth Rs.6500 crore of which Rs.2000 crore would be approved shortly.
He said IIFC (UK) a wholly owned subsidiary of the company located at London lent in foreign currency to indian companies implementing infrastructure projects in India for import of Capital equipment. Out of the 5 B usd approved by the RBI, the company had already sanctioned projects worth USd 4165 billion to 40 infrastructure projects and disbursed USd 907 m so far.
The Company planned to disburse credit to the tune of Rs.8000 crore this fiscal.
He said the company 's Bond issue for Rs.15,000 crore with a green shoe option upto the shelf limited of Rs.9215 crore would open on December 26. The Bond had a face value of Rs.1000 each and would come in three series with tenors of 10 eyars, 15 yers and 20 years.
The company had already raised Rs.785 crore through private placement basis out of the Rs.10,000 crore tax free bonds it had been authorised by the Central Baord of Direct Taxes.