IIFCL to raise $1 bn to fund infra projects

Infrastructure financing company IIFCL today said it will raise one billion (around Rs 4,600 crore) dollar in the next two fiscal years to fund power, road, port and airport projects.

"We have so far not finalised the date, but our plan is to raise $500 million each in 2010-11 and 2011-12," IIFCL Chairman S S Kohli told reporters on the sidelines of a CII real estate event here.

The company is looking to raise the fund as per its need and keeping in mind the current available resources, he added.

IIFCL had recently signed an agreement with Germany's development bank KFW for raising $50 million.

On disbursement of loans, Kohli said, "As of today our disbursement stands at Rs 7,300 crore and we hope to close this fiscal at over Rs 9,000 crore".

Established by the government in 2006 to fund major infrastructure projects, IIFCL has been playing a key role in battling the slowdown by promoting infrastructure development across the country.

And as part of the stimulus packages last year, which saw public sector spending shooting up massively, the government had allowed IIFCL to raise Rs 10,000 crore from the market through tax-free bonds in March 2009 to support various core sector projects.