FM launches India's first Infrastructure Debt Fund

Business

oi-Sneha

By Sneha B K

Published: Wednesday, February 20, 2013, 11:46 [IST]

Finance Minister P Chidambaram on Tuesday launched the operations of India Infra Debt Limited (Infradebt), the first Infrastructure Debt Fund (IDF) under the NBFC structure by handing over the first IDF - NBFC license to Infra Debt in presence of the promoters, ICICI Bank, Bank of Baroda, Citibank and Life Insurance of Corporation (LIC).

ICICI Bank (together with a wholly-owned subsidiary) is the largest shareholder in Infradebt with 31% holding followed by Bank of Baroda at 30%, Citibank at 29% and LIC at 10%. I

Infradebt would seek to raise debt capital from domestic as well as foreign resources and would invest in infrastructure projects under the Public-Private Partnership model that have completed one year of operations

Infradebt will expand and diversify the domestic and international sources of debt funding to meet the large financing needs of the infrastructure sector, thereby giving an impetus to the creation of the infrastructure necessary to drive India's growth.

Speaking on this occasion, the Finance Minister Shri Chidambaram emphasized the need to meet the financing requirements of the Infrastructural deficit

He said, the Government has also allowed the issue of Tax Free Bonds amounting to Rs. 54,500 crore for the FY 2012-13, doubled from Rs. 30,000 crore in FY 2011-12. These bonds would mobilize much needed long-term funds for the infrastructure development.

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