IIFCL to sign $700 mn loan agreement with ADB

India Infrastructure Finance Company (IIFCL) will sign a loan agreement of $700 million with the Asian Development Bank (ADB) next month, a top company official said here today.

"We will get $700 million from ADB and an agreement would be signed next month. The agreement of $1.2 billion with World Bank has already been signed," IIFCL Chairman and Managing Director S S Kohli said here today on the sidelines of CII-organised Banking Colloquium 2009.

Kohli said another euro 184 million was also on its way from another multilateral agency.

Besides, foreign loan, IIFCL will raise another Rs 3,000 crore from bonds or loans from Indian banks in the domestic market during the year.

"We have already raised Rs 1,000 crore so far in the year," Kohli said.

Speaking on the loan disbursal target, he said the 2009-10 target was Rs 10,500-11,000 crore and hoped another Rs 10,000 crore raised from bonds would be utilised as refinance to banks.

So far Rs 6,300 crore had been disbursed in the current fiscal. IIFCL has so far sanctioned 111 infrastructure projects of which financial closure of 103 projects had been achieved.

The total exposure of IIFCL is Rs 19,000 crore.

In wake of problems faced by SPVs for the projects getting ratings to raise finance, Kohli said a scheme of credit enhancement has been devised to overcome the problem and ICRA has asked to prepare the draft for the scheme to be submitted in the next 2-3 months.