The Hindu Business Line : IIFCL in talks with multilateral institutions

New Delhi, Oct. 18 In the wake of mounting demand for infrastructure funding, the India Infrastructure Finance Company Ltd (IIFCL) is in talks with a number of multilateral institutions to augment its resources, according to its Chairman and Managing Director, Mr S.S.Kohli.

“We are looking at $300-million external commercial borrowing (ECB). Talks are also on with the World Bank for $500 million, Asian Development Bank for $500-million borrowing and with Kfw for €280 million ,” Mr Kohli told Business Line here.

IIFCL, a Government-owned company, was established in January 2006 with the objective of providing long-term finance to viable infrastructure projects.

The company provides long-term debt to various infrastructure projects and also refinance to banks and other financial institutions for their loans to infrastructure projects.

Mr Kohli said that IIFCL had so far sanctioned financial assistance of Rs 14,966 crore towards 64 infrastructure projects, involving total project cost of Rs 1,11,586 crore. The actual disbursement had been about Rs 700 crore towards 34 projects, he added.

Knowledge partner

Meanwhile, IIFCL will act as knowledge partner for Macquarie Bank Ltd for a venture capital fund with initial target of $1 billion, growing to in excess of $2 billion, which will be invested in projects and companies in roads, ports, power, airports and other urban infrastructure sectors over the next 3-5 years.

IIFCL had already joined hands with IDFC, Blackstone Group and Citigroup for a venture equity fund of $2 billion under the India Infrastructure Initiative. Besides, IIFCL has formed a strategic partnership with 3i Group Plc to act as advisor.

More Stories on : Financial Institutions | Overseas Borrowings | Infrastructure

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page