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IIFCL inks pact with Japanese bank to raise $5 bn

IIFCL inks pact with Japanese bank to raise $5 bn
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First Published: Fri, Sep 21 2007. 05 58 PM IST
Updated: Fri, Sep 21 2007. 05 58 PM IST
By PTI
New Delhi: India Infratructure Finance Corporation (IIFCL) tied up with Japan’s financial institution Sumitomo Mitsui Banking Corp (SMBC) on 21 September for raising resources worth $5 bn by 2012, to fund core sector projects in the country.
Under the Memorandum of Understanding (MoU) signed betweeen the two companies, SMBC would support core projects and also the fund raising need of IIFCL to the tune of $5 billion over a period of five years, IIFCL chairman S S Kohli said.
The corporation would also help in raising resources from Japanese and other global debt market, he said, adding it would also offer customised solutions in the areas of project advisory, lending and structured finance.
According to the MoU, both insitituion proposes to co-operate and compliment each other capabilities in creating deal flows of infrastructure projects that could be structured along commercially viable lines.
Commeting on the pact SMBC India country head (International Finance Department) Bharat Kaushal said: “we would be focusing on infrastructural financing for the energy, telecom and transportation sectors.”
Estimates show India would need funds worth $475 billion for infrastructure projects in the next five years. On IIFCL operation Kohli said, the institution plans to sanction proposals for infrastructural developments worth six billion dollar by the end of March 2008.
“We have sanctioned 64 proposals worth $4 billion till now that include 37 highway and 23 power infrastructure development projects,” he said.
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First Published: Fri, Sep 21 2007. 05 58 PM IST