Infradebt, India's first infrastructure debt fund (IDF) is set to kick-start its formal operations. Finance minister P Chidambaram handed over the license to the fund's promoters including ICICI Bank, Bank of Baroda, Citibank and Life Insurance Corporate of India.The infra debt fund has equity capital of Rs 300 crore.The non-banking financial company (NBFC) includes independent management with LIC, Bank of Baroda, ICICI Bank and Citibank among the major participants. The infra debt fund projects can finance projects up to Rs 200 crore
ICICI Bank (together with a wholly-owned subsidiary) is the largest shareholder in Infradebt with 31 percent stake holding followed by Bank of Barodaat 30 percent, Citibank at 29 percent and LIC at 10 percent.Infradebt would seek to raise debt capital from domestic as well as foreign resources and would invest in infrastructure projects under the Public-Private Partnership model that have completed one year of operations. Infradebt will expand and diversify the domestic and international sources of debt funding to meet the large financing needs of the infrastructure sector.
What is "Infrastructure Debt Fund" ?
Earlier, Pranab Mukherjee, the then finance minister had announced the setting up of IDFs in his budget speech for the year 2011-2012. The objective was to facilitate the flow of long-term debt into infrastructure projects.The IDF will be set up either as a trust or as a company. A trust based IDF would normally be a mutual fund (MF) while a company based IDF would normally be a NBFC. IDF - NBFC would raise resources through issue of either rupee or dollar denominated bonds of minimum 5 year maturity," RBI had said in a notification issued on November 21, 2011.
ICICI Bank (together with a wholly-owned subsidiary) is the largest shareholder in Infradebt with 31 percent stake holding followed by Bank of Barodaat 30 percent, Citibank at 29 percent and LIC at 10 percent.Infradebt would seek to raise debt capital from domestic as well as foreign resources and would invest in infrastructure projects under the Public-Private Partnership model that have completed one year of operations. Infradebt will expand and diversify the domestic and international sources of debt funding to meet the large financing needs of the infrastructure sector.
What is "Infrastructure Debt Fund" ?
Earlier, Pranab Mukherjee, the then finance minister had announced the setting up of IDFs in his budget speech for the year 2011-2012. The objective was to facilitate the flow of long-term debt into infrastructure projects.The IDF will be set up either as a trust or as a company. A trust based IDF would normally be a mutual fund (MF) while a company based IDF would normally be a NBFC. IDF - NBFC would raise resources through issue of either rupee or dollar denominated bonds of minimum 5 year maturity," RBI had said in a notification issued on November 21, 2011.
Thanks very much you provided infInformat at that time was valuable. Byorung Bridge Arunachal Pradesh student
ReplyDelete