India Infrastructure Finance Company Ltd (IIFCL) will raise Rs 3,500 crore through tax-free infrastructure bonds in the present financial year.

“We are writing to the Government for necessary approvals. Once we receive the approval, it will not take more than a week to tap the bond market,'' Mr S.K. Goel, Chairman and Managing Director, IIFCL, told newspersons after the inauguration of the first regional office of the company here on Sunday.

The State-owned company has charted a plan to raise another Rs 6,500 crore through bonds next year as well.

IIFCL has almost readied its credit enhancement product developed jointly with Asian Development Bank.

This product would provide partial guarantee of up to 50 per cent for bonds issued by infrastructure companies which would improve their ratings to ‘AA' and AA+ in the market.

“Our objective is to provide additional sources of funds to infrastructure companies. With improved ratings, they can attract huge investments from insurance and pension funds,'' Mr Goel said. IIFCL has already short-listed 10 infrastructure projects, including three from GVK and two from L&T in power and road sectors. “These pilot transactions in credit enhancements may commence by September,'' the CMD said. During the current financial year, IIFCL has a target of reaching Rs 25,000 crore in its loan book.

In the last financial year ended March 2011, it had a loan book of Rs 19,000 crore. The cumulative sanctions stood at Rs 42,244 crore. It was also ‘confident' of earning about Rs 500 crore profits during 2011-12. Last year, it earned a net profit of Rs 330 crore.

REGIONAL OFFICES

To meet fund requirements of infrastructure companies in all parts of the country, IIFCL would roll out regional offices.

Earlier, Mr G.V.K Reddy, Chairman of GVK Group of companies, formally inaugurated IIFCL's first regional office here.

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