Home » CleanTech/ Renewable Energy » India Infrastructure Finance Company Ltd in talks with three intl agencies to raise $ 750 mn

India Infrastructure Finance Company Ltd in talks with three intl agencies to raise $ 750 mn

According to reports, state-owned India Infrastructure Finance Company Ltd (IIFCL) is in discussions with three international agencies to raise $ 750 million, a top official of the infra lender said today.

The three overseas institutions that the company is in talks with are – Japan International Cooperation Agency, European Investment Bank and French Development Agency (AFD).

Harsh Kumar Bhanwala, Chairman and Managing Director (officiating) said the loan from these institutions will be used to fund clean energy and urban infrastructure projects.

“We are in dialogue with three multilateral institutions for raising resources during the next couple of years. Normally these agencies will take 7 to 8 months before they sanction a line. Our negotiations are in advanced stage. I would say that by the year end we expect the sanction from them,” Bhanwala told reporters in a press conference.

He said the agencies are keen to fund projects which have no or minimum environmental and social issues.

“There are conditions. Environment and social issues should be as low as possible. They would not touch thermal projects. They would not touch hydel projects. They are keen on renewable energy, urban infrastructure and ports. We are also focusing on clean energy projects,” Bhanwala explained.

He said the talks are being held to raise $ 500 million from JICA, $ 150 million from EIB and $ 100 million from ADF.

Recently, the Asian Development Bank (ADB) has approved $ 700 million in loans to IIFCL to fund infrastructure projects.

The government authorised IIFCL to issue tax free bonds aggregating up to Rs 10,000 crore during the current fiscal out of which the company has already raised Rs 4,200 crore.

“The balance will be raised in two rounds. One will be in 3rd or 4th week of November and another round will be in January,” he said.

Replying to query, he said they are currently focusing on subordinate debt which would help companies maintain debt equity ratio as per standards. As on September 30, IIFCL has made gross sanctions of Rs 52,907 crore while disbursements stood at Rs 29,404 crore.

On the company’s financials, Bhanwala said the net profit in the current fiscal is expected to be around Rs 800 crore against Rs 1,047 crore due to market conditions.

Comments are closed.

Scroll To Top