IIFCL to get new $1.2 bn credit line from ADB

India Infrastructure Finance Company Limited (IIFCL) has negotiated a second line of credit of $1.2 billion from Asian Development Bank for spending in various sectors, chairman and managing director of the state-owned company S K Goel said.

“We have negotiated a new credit line of $1.2 billion from ADB,” Goel told reporters on the launch of the lender’s tax-free bond issue here.

IIFCL had earlier secured an RBI line of credit from the foreign exchange reserves of $5 billion out of which $1 billion had been already consumed.

“We will again request the RBI to extend the line of credit once the validity of the existing one expires on March, 2015,” he said.

On the tax-free bond issue, which opened today, Goel said the offering had received extremely good response. The company collected Rs 80 crore in the first hour, he added.

The company is entering the market to raise Rs 1,500 crore with a green shoe option upto the shelf limit of Rs 9,215 crore.

The government allowed IIFCL to Rs 10,000 crore through issue of tax-free bonds out of which Rs 785 crore had been already raised through private placement. The tax-free bond issue closes on January 11.