The International Finance Corporation (IFC) is likely to pick up 10%-12% stake in the India Infrastructure Fund (IIF), an infrastructure fund floated by Infrastructure Development Finance Company (IDFC) in association with Citigroup and Blackstone a few months ago. The lending agency of the World Bank has announced its intention to invest close to $100 million in IIF.
Talks are under way with domestic as well as foreign investors to raise $1.2 billion for IIF, said market sources.
The fund is aimed at investing in sectors such as energy and utilities, transport, telecommunications and in other areas, including water supply and treatment, waste collection, the sources added.
According to the sources, IIF, being managed by IDFC Project Equity Company Limited, a wholly owned subsidiary of IDFC, will become the first dedicated infrastructure fund to get listed.
When contacted, president and CEO of IDFC Project Equity Company MK Sinha said: ?We are talking to over 60 investors, including IFC. It is too early to comment on what would be the stake IFC will pick up. It is a fund and we welcome institutions such as IFC. We want the World Bank arm to invest in a big way and pick up stake as much as they want.?
?IDFC along with Citigroup and Blackstone together committed close to $300 million into IIF and IDFC alone commit $100 million (including seed assets). We hope the financial closure of the $1.2 billion fund will get over by end-September and will have 10 to 15 investors,? Sinha added.
Over a period of time the fund would get listed to enable it to access to additional market resources apart from providing comfort to potential investors, market sources added.