The Hindu Business Line : IDFC likely to get $50 m from IFC

INFRASTRUCTURE Development Finance Company (IDFC) is likely to get a $50-million (around Rs 225 crore) loan from International Finance Corporation (IFC).

The 10-year loan is intended to strengthen IDFC's ability to fund infrastructure projects.

IFC notably says that the loan will support IDFC "at a time when other local institutions and commercial banks are withdrawing from infrastructure financing due to funding constraints as well as a shift in focus towards retail finance."

The loan will enable IDFC to better leverage its balance sheet, says IFC. Further, the World Bank arm will help IDFC leverage IFC's vast expertise in the area of emerging markets project finance. IDFC has already adopted IFC's processes and methodologies in environmental and social assessment of sub-projects.

The multilateral lending agency is already a shareholder in IDFC. It's also setting up a second private equity fund with a corpus of about Rs 1,350 crore. It is also likely to come out with an initial public offering shortly.

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