Press Trust of India / New Delhi Aug 13, 2009, 19:22 IST
State-owned infrastructure funding company IIFCL is planning to raise $500 million (Rs 2,500 crore) through its UK-based subsidiary for financing import of capital goods for infrastructure development.
"In the first tranche, we have raised $250 million and financed 9 projects. Going forward, we plan to raise another $500 million through our London subsidiary," India Infrastructure Finance Company (IIFCL) Chairman and Managing Director S S Kohli told PTI.
As per the mandate, IIFC (UK) would borrow a small part of the foreign exchange reserves from the Reserve Bank of India and lend to Indian companies implementing infrastructure projects solely for meeting their capital expenditure outside India, he said.
The subsidiary will be borrowing up to five billion dollar from the RBI by way of issuance of dollar denominated bonds, he said.
Giving the break up of the project financed through this subsidiary, Kohli said, so far the subsidiary has sanctioned about $1.4 billion for 9 projects for import of infrastructure equipment.
The total project cost is around $12 billion and the approved loan portfolio comprises 7 projects from the power sector and two urban mass rapid transport sector, he added.
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