IL&FS signs funding MoU; ICICI opens branch in China1 min read . Updated: 16 May 2015, 04:50 PM IST
IL&FS is seeking up to $1 billion of funding from ICBC to support infrastructure financing in India
Mumbai: Infrastructure Leasing & Financial Services Limited (IL&FS), one of India’s leading infrastructure development and finance companies, is seeking up to $1 billion of funding from the Industrial and Commercial Bank of China (ICBC) to support infrastructure financing in India.
A memorandum of understanding (MoU) to that effect was signed between IL&FS and ICBC, the world’s largest bank with more than $3 trillion in assets, on Saturday.
“ICBC group will consider providing financial support of up to $1 billion to the IL&FS group. These funds will be directed towards the infrastructure development requirements and related investments of the group," IL&FS said in an emailed statement.
IL&FS’ power generation arm IL&FS Energy Development Co Ltd (IEDCL), also signed an agreement with China’s Huaneng Group, one of the country’s largest state-owned power producers, to jointly develop, implement and operate a 3960 MW coal based coastal power project in Kutch, Gujarat.
“The thermal power project is a part of Special Economy Zone (SEZ), being developed by IL&FS Group, and has achieved significant level of project development including acquisition of land, statutory clearances and recommendation of Ministry of Environment & Forest (MoEF) for grant of environment clearance," IL&FS said in the statement.
Separately, private sector lender ICICI Bank Ltd also inaugurated a branch in Shanghai, its first full fledged branch in that country. “It will begin with 17 well trained banking professionals spread across different functions including corporate banking, operations, finance and treasury," ICICI said in a statement.
ICICI Bank and IL&FS have joined a clutch of companies from India including Bharti Airtel Ltd, Adani Group and Welspun Group in signing loan, investment and production agreements during prime minster Narendra Modi’s three-day visit to China which ended on Saturday.