IDFC plans to raise $300 mn through foreign loans

Besides, the infrastructure major raises $ 150 mn in Q3; company's loan growth to remain flat

Infrastructure Development Finance Company (IDFC) has said it is considering raising $300 million through foreign loans.

The company raised $150 million in the third quarter (Q3) of the current financial year through international loans with a five-year maturity.

It has been raising funds from international markets regularly, through bonds and loans.

S J Balesh, senior director (resources), said, “This round of fund-raising is meant to diversify sources and keep the interest of international investors alive.”

The total costs, covering various heads such as credit spreads and those due to hedging of currency for foreign loans, were on a par comparable with lending rates that the banks charge for domestic loan, he added.

IDFC, a bank license aspirant, posted a 10 per cent rise in consolidated net profit at Rs 501 crore for Q3, compared with Rs 455 crore in the corresponding period last year.

Vikram Limaye, managing director, said given the challenges in infrastructure development, loan growth might be flat for the current financial year. The gross loan book in Q3 rose one per cent to Rs 54,552 crore, from Rs 54,104 crore in the same period last year.

Gross approvals increased eight per cent to Rs 20,376 crore in April-December 2013 from Rs 18,838 crore in the corresponding period last year. However, gross disbursements for the same period saw a sharp decline of 41 per cent from Rs 13,070 crore to Rs 7,659 crore.

The pressure on asset quality is expected to continue through the current financial year due to macroeconomic slowdown and other issues, which have been troubling the sector over the last few quarters.

Gross non-performing loans of the firm rose 0.6 per cent in Q3, up from 0.3 per cent during the corresponding period the previous year.