ICICI led group launches $2bn IDF, to start financing by March-end

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Four financial institutions led by the ICICI Bank launched a USD 2 billion (about Rs 10,000 crore) Infrastructure Debt Fund (IDF), which would finance its first project by the end of next month.

Chanda Kochhar, CEO and MD of ICICI Bank said, "This is the first IDF in the form of NBFC and will commence operations very soon. The capital of Rs 300 crore has been contributed."

Besides ICICI Bank, the other sponsors of the India Infra Debt Ltd are Bank of Baroda (BoB), Citi and LIC. The ICICI group has 31 per cent, BOB - 30 per cent, Citi - 29 per cent and LIC - 10 per cent.

Talking about the fund flow to the IDF, Kochhar said: "The structure is that after Rs 300 crore equity capital, it can then raise tier 2 capital, it can raise further funds in the form of debt and it will look at all those infrastructure projects that have completed implementation."

Oozing confidence regarding IDF as additional source of Infrastructure funding, Kochhar said that the projects have been identified which have completed minimum one year of operation and added that the fund can finance projects of up to USD 2 billion.Speaking about the IDF, CEO of Citi India Pramit Jhaveri said, "There are large pools of global and domestic capital looking for attractive investment prospects. India Infradebt is a unique platform to match these funds and their appetite for long term and stable investments with the compelling India infrastructure opportunity."This is the fourth IDF after the launch of the ones by IL&FS, IIFCL and SREI.

Read more about: icici bank
Story first published: Wednesday, February 20, 2013, 11:30 [IST]
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