IL&FS Fin aims 30 pc jump in debt syndication volumes in FY14

Written by Agencies | Mumbai | Updated: Dec 25 2012, 03:17am hrs
Infrastructure financier IL&FS' financial services arm is targeting a jump of up to 30 per cent in money raised through its project debt syndication advisory in 2013-14, a top official said today.

"This year (FY13), we will close with about USD 5 billion and I hope it will go up to USD 6-8 billion in the next year (FY14)," IL&FS Financial Services managing director and chief executive Ramesh Bawa told PTI.

The money raised will include that coming through advisory services offered by both the domestic desk as well as international ones in London, Dubai, Singapore and the newly opened office in Hong Kong, he said.

Typically, nearly half of the money raised through the debt syndication advisory comes from international markets, he said.

"Singapore and Hong Kong will contribute majorly to the international syndication. These two markets are very stable and have been largely unaffected even as Europe and America faced troubles," he said.

IL&FS Financial Services inaugurated its fourth international office in Hong Kong last week with the aim to tap into the Greater China market both for IL&FS group companies as well as Indian corporates looking for overseas debt.

Bawa said the company already has up to 5 mandates from Indian corporates looking to tap money from Hong Kong and should be helping them raise up to USD 500 million in the next few months.

"These will be 3 year Dimsum bonds which the corporates are looking to raise for their overseas requirements. The money will not come ashore to India," he said.

At present, the Hong Kong office will advice only on debt syndication, which does not require any regulatory go-aheads, Bawa said, adding that in the next 6 weeks the company is expecting licences from the local regulator to start mergers and acquisition advisory and other securities-related activities.

Bawa termed the draft guidelines for non-bank financing companies (NBFCs) issued by RBI earlier this month as a "bit difficult" for infrastructure financiers, but said the two year migration period will help the lenders.

The guidelines talk of reducing the period for NPA classification down to 90 days, on par with the banks, from the earlier 180 days.