The Hindu Business Line : Lanco Infratech seeks $100-m IFC funding

This would include $80 million in debt and $20 million by way of equity participation to part finance its expansion plans and support several projects under execution.

The Chief Financial Officer of Lanco Infratech Ltd, Mr J. Suresh Kumar, told Business Line that the company had big capital expenditure plans in construction and equity investments and has, therefore, invited IFC to invest both through debt and equity.

The proposal is currently undergoing due diligence and the matter is likely to come up for consideration by November. Among various important considerations for clearance, the project would be subject to environmental audit, he said.

“This could be either in one tranche or in more than one and depends upon the fund requirements and how we would like to utilise these funds in various projects,” he said.

Earlier, IFC had signed an agreement to subscribe for about 5.84 per cent equity amounting to $8 million in Lanco Amarkantak, a special purpose vehicle (SPV) created to execute a 600-MW project in Chhattisgarh with an outlay of Rs 2,600 crore.

DEG, the private sector arm of KFW, Germany, had committed to pick up 9 per cent stake in Lanco Amarkantak.

The Hyderabad-based infrastructure company is engaged in several infrastructure projects and operating about 519 MW with a combination of gas-based, biomass and hydel plants. The company is executing power projects with a cumulative capacity of about 3,957 MW in Andhra Pradesh, Karnataka, Chhattisgarh and Uttar Pradesh.

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