IIFCL to launch $1 billion infra debt fund
cent equity in Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), nodal agency for Delhi Mumbai Industrial Corridor (DMIC), in which infra projects of USD 90 billion are expected to come up across six states.
IIFC's UK-based subsidiary has USD 5 billion credit line from RBI to provide loans in foreign currency to infra projects in India.
"RBI had given us a USD 5 billion credit line, and we opened a subsidiary in London, India Infrastructure Fund Company(IIFC)-UK from where we are disbursing foreign currency loans at cheap rates like London Interbank Bank Offer Rate (LIBOR) plus 200 basis points," Goel said.
"So far IIFC UK has disbursed up to USD 1 billion loans," he said.
The interest spread of IIFC, difference between borrowing cost and lending rate, stood at 2.80 per cent. It's total borrowings stood at around Rs 22,000 crore.
IIFC has sanctioned Rs 71,000 crore up to September 30, 2012, of which Rs 26,000 crore has been disbursed.
"Our disbursement target for infra projects by March 2013 is Rs 30,000 crore," Goel said.
Meanwhile, the company is also planning to raise Rs 1,500 crore through its tax free bond issue with a green shoe option up to the shelf limit of Rs 9,215 crore on first-come first-serve basis.
The issue will open on December 26 and closes on January 11. Retail investors shall get 50 basis points higher return compared to other categories like QIB, HNI and corporates, Goel said.
For retail investors, the bonds carry a coupon rate of 7.69 per cent for
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