India Infrastructure Finance Company Limited (IIFCL) has launched on 18 June, its first infrastructure debt fund (IDF) with targeted initial corpus of $1 billion. The company has launched the debt fund through the mutual fund route. After launching the new scheme, Finance Minister P Chidambaram said the fund would help mobilize long-term financing for infrastructure projects. Chidambaram said introduction of the new scheme by the IIFCL would "pave the way for setting-up of more such infra debt funds."Besides IIFCL, other investors in the debt fund include Canara Bank, Oriental Bank of Commerce, Corporation Bank and HUDCO. The new scheme will mainly undertake investment in debt securities or securitized debt instruments of infrastructure companies, infrastructure capital companies or infrastructure projects, special purpose vehicle (SPV), bank loans etc. with the investment objective of capital appreciation and trade on the stock exchange, according to a statement issued by the finance ministry. IIFCL chairman S.K. Goel said the IDF will complement commercial banks in providing the required long-term funding to infrastructure sector and help in addressing their asset liability mismatch.
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