Mumbai: Non-banking finance company IL&FS Financial Services (IFIN) on Sunday said it plans to pare down its fund-raising by around $1 billion to $4 billion as infrastructure projects are crawling due to regulatory issues.
Earlier the company was planning to mop up $5 billion from the markets through debt syndication by the end of this fiscal to fund its infrastructure projects.
“Frankly, infrastructure projects are not doing well for the last 8-10 months. Therefore, we decided to reduce the amount,” IFIN managing director and chief executive Ramesh C. Bawa told PTI here.
“Now we are planning to raise $4 billion, of which, we have already raised $1.5 billion in the past six months. The rest will be mobilized by the end of fiscal,” Bawa added.
“We will raise this money from both domestic as well as overseas markets. Around one-third amount will come from overseas and the rest from local markets.”
The Mumbai-based NBFC, a wholly-owned subsidiary of Infrastructure Leasing & Financial Services (IL&FS), plans to use the funds to finance projects in the power, road, coal and port sectors. The company is currently engaged in over 10 power and road projects.
IFIN has also set up its international presence through its wholly-owned subsidiaries, IL&FS Global Financial Services in Singapore, London and Dubai.
When asked the reason for raising funds from overseas markets, Bawa said frequent interest rate hike had made fund-raising too costly from the domestic markets.
The RBI has hiked policy rates 11 times since March 2010 to curb inflation.