IIFCL plans to raise Rs11,000 cr via bonds

IIFCL plans to raise Rs11,000 cr via bonds

Mumbai: India Infrastructure Finance Company (IIFCL) on Wednesday said it is targeting to raise Rs11,000 crore from institutional and retail investors through bond issues by March 2012.

“We have written to the government to come out with a Rs10,000 crore tax free infra bonds issue by March, which will be subscribed by institutions," IIFCL chairman and managing director S. K. Goel told reporters. The company will also raise Rs1,000 crore through retail tax saving bonds by this fiscal-end, he added.

In 2009, the company had raised Rs10,000 crore through a tax-free bond issue, said Goel, adding, it had also raised Rs95 crore via the retail tax saving bond issue last fiscal.

IIFCL has also firmed up plans of launching a Rs5,000 crore debt fund to support long gestation infrastructure projects and is awaiting for infra debt fund guidelines from the Reserve Bank of India (RBI), he said.

“We have decided to start a NBFC (non banking finance company) for subsidiary for the infra debt fund and have already taken approval from our owners which is the government," he said.

After the infra debt fund, Goel said the company also has plans of launching a Rs3,000crore equity fund.

According to Plan Panel estimates, infrastructure sector will be requiring investments of $1 trillion in the 12th plan period (2012-17).

Goel was talking to reporters after signing a memorandum of understanding with public sector lender IDBI for takeout financing.

Under the agreement, IIFCL plans to take up to Rs600 crore of advances to infrastructure from IDBI’s books, Goel said.

IIFCL is targeting to grow its takeout financing books from Rs70 crore to Rs10,000 crore and will soon be easing certain norms to achieve the high growth target, Goel said.

“We will be revising the takeout financing scheme. We have already sent a proposal to relax norms to the Cabinet and I expect a clearance in the next four to six weeks," he said.

It will also tie-up with more banks to achieve the high target, Goel said. Presently, it has a tie-up with Union Bank of India, Central Bank of India and Punjab National Bank.

IIFCL, which had a loan book of Rs19,000 crore as on March 2011, is targeting to grow it to Rs25,000 crore by fiscal year 2012 end, he added.