The Hindu Business Line : IIFCL’s UK arm gets 10 proposals for forex loans

New Delhi, May 20 IIFCL’s offshore subsidiary at London has already received 9-10 proposals from Indian companies for availing foreign currency loans to meet their import requirements for infrastructure projects in India.

The subsidiary commenced operations on April 10 this year.

All the proposals relate to power sector, Mr S.S. Kohli, Chairman and Managing Director of India Infrastructure Finance Company Limited (IIFCL), told Business Line here.

The offshore arm had been set up to supplement IIFCL’s role in financing India’s infrastructure.

IIFC (UK) will borrow from the Reserve Bank of India up to a maximum of $5 billion in several tranches and provide foreign currency loans to meet the import requirements of Indian companies developing infrastructure.

The loan would be solely for meeting capital expenditure outside India.

ECB plans

Meanwhile, IIFCL plans to go in for another round of external commercial borrowing (ECB) for about $200 million.

This is in addition to the ECB of $250 million that has almost been finalised and is to be raised shortly.

“The ECB of $250 million is in the final stages. The documentation is almost complete. We are also negotiating for another $200-million ECB,” Mr Kohli said.

For the year 2007-08, IIFCL, a Government-owned company, has reported a net profit of Rs 14.10 crore, which represents a 306 per cent increase over net profit of Rs 3.47 recorded in 2006-07.

Sanctions

Mr Kohli said that IIFCL has till date sanctioned financial assistance of Rs 16,969 crore to 78 infrastructure projects involving a total project cost of Rs 1,18,703 crore. These projects are spread across 19 States.

The total funds disbursed so far stood at Rs 1,684 crore, including Rs 660 crore for roads sector and Rs 619 crore for power sector. Of the 78 projects assisted, 65 had achieved financial closure.

IIFCL was set up 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.

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