Infrastructure debt fund promoted by ICICI Bank, BoB, Citibank and LIC inks pact with NHAI, Himalayan Expressway
Infrastructure Debt Funds (IDFs) should try to mobilise resources from the insurance and pension sectors as these funds have a long-term horizon, according to Finance Minister P. Chidambaram.
The first tripartite agreement of this kind was signed by India Infradebt Fund (IDF), an IDF promoted by ICICI Bank, Bank of Baroda, Citibank and LIC, with National Highways Authority of India (NHAI) and Himalayan Expressway Ltd.
Chidambaram handed the agreement for the project to strengthen the existing carriageway spreading across Punjab, Haryana and Himachal Pradesh. The project is in the operational phase, a statement to the media said.
This is one more step in operationalising the IDF structure as conceived by the Ministry of Finance and is in line with the Centre’s commitment to attract funds for infrastructure development, the statement added.
IDF will provide long-term financing solutions to develop infrastructure in India, with a capital of Rs 300 crore.
With the signing of the tripartite agreement, the IDF will disburse its first loan under the IDF scheme. It also strengthens the confidence of domestic and overseas investors in Indian Infrastructure.
Chanda Kochhar, CEO and MD of ICICI Bank, said the tripartite agreement is the outcome of a partnership between two key Ministries – Finance and Road Transport and Highways. Financing infrastructure is a national agenda and would require the cooperation and partnership of all institutions and players.