The Hindu Business Line : India Infra ropes in 3 banks for raising ECB

New Delhi May 26 India Infrastructure Finance Company Ltd (IIFCL) has roped in three banks to help raise external commercial borrowing for the company, its Chairman and Managing Director, Mr S.S. Kohli said.

"We have got regulatory clearance for $500-million ECB. The first tranche of about $50 million is expected in 45 days. We will disburse larger amount (for infrastructure financing) of between Rs 2,500 and Rs 3,000 crore this year," Mr Kohli told Business Line here.

The banks that have been given the mandate include Standard Chartered Bank and Caylon Bank.

Infrastructure finance

So far, IIFCL has disbursed about Rs 200 crore as infrastructure finance. The company has till date sanctioned assistance of Rs 9,400 crore for projects with cost of Rs 66,000 crore.

IIFCL, which is wholly owned by the Government, was set up in January last year with an objective of filling the gap for long-term infrastructure finance in the country. Banks are not in a position to provide long-term infrastructure finance owing to mismatches in assets and liabilities.

Meanwhile, Mr Kohli admitted at a meeting on public-private partnerships in state highways that the inflow of proposals has slowed down on account of hardening of interest rates.

He also expressed hope that interest rates would stabilise in the next two-three months.

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