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IIFCL to raise $500 mn through UK subsidiary

IIFCL to raise $500 mn through UK subsidiary
PTI
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First Published: Thu, Aug 13 2009. 07 11 PM IST
Updated: Thu, Aug 13 2009. 07 11 PM IST
New Delhi: State-owned infrastructure funding company IIFCL is planning to raise $500 million (Rs2,500 crore) through its UK-based subsidiary for financing import of capital goods for infrastructure development.
“In the first tranche, we have raised $250 million and financed 9 projects. Going forward, we plan to raise another $500 million through our London subsidiary,” India Infrastructure Finance Company (IIFCL) chairman and managing director S S Kohli told PTI.
As per the mandate, IIFC (UK) would borrow a small part of the foreign exchange reserves from the Reserve Bank of India and lend to Indian companies implementing infrastructure projects solely for meeting their capital expenditure outside India, he said.
The subsidiary will be borrowing up to $5 billion from the RBI by way of issuance of USD denominated bonds, he said.
Giving the break up of the project financed through this subsidiary, Kohli said, so far the subsidiary has sanctioned about $1.4 billion for 9 projects for import of infrastructure equipment.
The total project cost is around $12 billion and the approved loan portfolio comprises 7 projects from the power sector and two urban mass rapid transport sector, he added.
IIFCL is also planning to raise up to Rs5,000 crore through taxable bonds from the domestic market to fund various projects.
This is over and above Rs30,000 crore, which the government allowed the IIFCL to raise from the domestic market as tax free bonds to enable refinancing various projects in the core sector, particularly highways and port.
The company, Kohli said, has already raised Rs2,000 crore from the market during the current fiscal.
The funds would be raised for financing infrastructure sector projects across the sectors, he said, adding “we are talking to different companies and are waiting for financial closures”.
The company, which was incorporated by the government in 2006 to fund infrastructure sector projects, has disbursed Rs4,800 crore for 77 projects till March 2009.
During the fiscal, Kohli said, “we have disbursed Rs3,200 crore as compared to Rs1,541 crore in the previous fiscal.”
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First Published: Thu, Aug 13 2009. 07 11 PM IST