International Finance Corporation plans to invest $500 million in 2006 in the Indian private sector and is currently talking to second tier banks about investments. | |
| IFC's incremental investment in 2006 is almost half the institution's current outstanding India portfolio of $ 1.2 billion. In the current portfolio, about $1 billion was in the form of loans, said Anil Sinha, general manager, SEDF (a facility managed by IFC), today on the sidelines of a workshop organised by the Competition Commission of India. |
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| Sinha said IFC was open to investing in the second tier banks with whom it was in talks through either equity or loans. IFC was willing to offer banks a choice between dollar denominated loans and rupee loans. It was also offering technical assistance to banks, added Sinha. |
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| The institution had earlier invested in financial sector companies such as HDFC Bank, IL & FS and IDFC. |
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| IFC's investment strategy in India will focus on manufacturing sector, infrastructure, and financial intermediaries. It is also looking at growing its advisory services in India. |
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| Sinha said an area that interested IFC was designing solutions to improve investment climate in different states. |
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| IFC also concentrates on providing assistance to small and medium enterprises in North East India. The South Asia Enterprise Development Facility (SEDF) is a multi-donor facility managed by IFC, which concentrates on the needs of small and medium enterprises in Bangladesh, Bhutan, Nepal and North East India. |
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| India is IFC's third largest country of operations. Recently, IFC announced an investment of $ 15.2 million in two subsidiaries of India Hydropower Development Company through a debt financing deal. Last year, IFC invested in equity of Apollo Hospitals, a company listed on the stock exchanges. |
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