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IIFCL’s London arm sanctions credit to slew of infra projects

According to reports, India Infrastructure Finance Company (UK) Limited, the London arm of State-owned infrastructure lender IIFCL, has sanctioned credit for a slew of power projects in the country.

The projects that have received Board sanction of the London arm on Thursday include GMR’s power project at Chhattisgarh, the Shishir Bajaj Group’s power project at Lalitpur and the port component of the Pipavav project.

The amount sanctioned for GMR’s power project is $100 million. For the Pipavav project, IIFC (UK) will provide $68 million, Harsh Kumar Bhanwala, officiating Chairman and Managing Director of IIFCL, told Business Line.

Disbursements for these projects will be done out of London once the documentation work is completed, he added.

The London subsidiary will provide foreign currency credit to Indian infrastructure companies for their capital expenditure abroad.

The foreign currency loan will be used to buy capital equipment abroad for these projects. Meanwhile, the parent company IIFCL is in talks with the European Investment Bank (EIB) and French development agency Agence Francaise de Development (AFD) for a $200 million line of credit.

This credit line is expected to be used for urban development, renewable energy and transmission projects in the country, Bhanwala said.

For the current fiscal, IIFCL is looking to borrow Rs 14,000 crore, of which Rs 10,000 crore is expected to come from domestic tax-free bonds.

The balance Rs 4,000 crore is expected to be mobilised from taxable bonds and forex bonds, an IIFCL official said.

IIFCL has already, this fiscal, mobilised nearly Rs 3,000 crore through private placement of tax free bonds.

The ongoing public issue of tax-free bonds has so far resulted in resource mop-up of Rs 750 crore.

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