HDFC, SBI Life buy 18.5% in IDFC Infra Debt Fund

Refinancing firm to raise Rs 1,000 cr via bonds

Housing Finance Development Corporation (HDFC) and SBI Life Insurance have together taken an 18.5 per cent stake in IDFC Infra Debt Fund, an infrastructure refinancing unit of IDFC.

IDFC Infra plans to raise up to Rs 1,000 crore through non-convertible debentures (NCDs), to provide refinancing support to operating infrastructure projects. It also plans to raise short-term funds of Rs 200 crore through commercial paper.

ICRA has assigned an ‘AAA’ rating with a stable outlook to Rs 1,000 crore of NCDs and ‘A1+’ to the commercial paper programme.

IDFC Infra was set up in March 2014 by IDFC, under a non-banking finance company structure. The equity share capital of Rs 440 crore is held by IDFC through its step-down entity, IDFC Financial Holding Company Ltd.

The IDFC stake is now about 81.5 per cent, after the recent development. The company got additional equity of Rs 100 crore from HDFC (11.1 per cent) and SBI Life Insurance (7.4 per cent), resulting into part-dilution of the stake of IDFC FHC, according to ICRA.

IDFC further plans to dilute its holding to 49 per cent by November 2017, to meet the regulatory norms.

IDFC Infra had a loan book of Rs 1,202 crore, end-March. It reported net profit of Rs 37.1 crore on a total income of Rs 75 crore in FY16.

In the current loan portfolio, renewable energy has the highest share of about 40 per cent, followed by information technology parks and special economic zones at 21 per cent and roads at 13 per cent.

The road sector projects are public-private partnership ones, tripartite agreements involving financier, road operator and project authority. The balance exposure is to projects without tripartite agreements.