IIFCL's $1B infra debt fund operational by May
India Infrastructure Finance Company's $ 1 billion infrastructure debt fund may be operational by the end of next month.
IIFCL Chairman and Managing Director S K Goel said they decided to go for mutual fund route because it is more flexible.
"The company has initiated the process for launching an IDF along with other co-sponsors and investors for a corpus of around $ 1 billion with an investment of around Rs 1,500 crore through mutual fund route" said IIFCL Chairman and Managing Director S K Goel.
Goel said the company has already got provisional approval from the Sebi.
Of the total fund size, $ 500 million would be raised from the domestic market while remaining would be from the overseas market, he said.
Domestic investors would include IIFCL, IDBI Bank and LIC while ADB has committed $ 200 million, Barclays and HSBC likely to bring in $ 150 million each.
The country's poor infrastructure, which is seen as a major bottleneck for economic growth, requires an estimated investment of a whopping $ 1 trillion in the 12th Plan, beginning 2012 and ending 2017. Of this, 50 per cent is expected to come from the private sector.
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