IIFCL to launch $1 billion infra debt fund
India Infrastructure Finance Company (IIFCL) today said it will launch a USD one billion infrastructure debt fund, for which final approval from market regulator Sebi is expected soon.
"We have got an in-principle approval from Sebi for our USD 1 billion Infra debt fund...all the formalities have been complied with and now it is in final stages of approval with the regulator...We expect it to be approved soon," IIFCL Chairman and Managing Director S K Goel said.
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"We want at least 50 per cent of this fund (USD 500 million) to come from Foreign Institutional Investors (FIIs), and we are in talks with Asian Development Bank (ADB), HSBC and Barclays, among others, for the purpose," he said.
Meanwhile, in a bid to develop bond market in India, the infra space lender has proposed to launch a new scheme - Credit Enhancement - in assistance with the Asian Development Bank from January next year.
"The scheme would facilitate launch of bonds by the private developers, on guarantees backed by IIFC, having due insurance cover from ADB," a company official said.
"The first bond, through this credit enhancement scheme, by a private developer group, GMR, is expected to hit the markets in January," Goel said.
IIFC, a wholly owned GoI company, was formed through a special arrangement, to promote infra sector by offering long term loans (25-30 years), is gearing up to meet the investment projections.
IIFC has acquired 41 per
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