India Infrastructure Finance Company Ltd (IIFCL) will raise Rs 3,500 crore through tax-free infrastructure bonds anytime 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 bond market,” Mr S.K. Goel, Chairman and Managing Director of IIFCL, told newspersons after the inauguration of the company's first regional office 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 the 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 shortlisted 10 infrastructure projects include three from GVK and two from L&T in power and road sectors.

“These pilot transactions in credit enhancements may commence by September this year,” the CMD said.

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