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Govt grants licence for infra debt fund

Govt grants licence for infra debt fund
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ICICI Bank, which is the largest shareholder of the first Infrastructure Debt Fund (IDF) under the non-banking finance company (NBFC) structure, received license for the fund from Finance Minister P Chidambaram.

Following the receipt of the licence, commercial operations of the fund, named India Infradebt, would begin. Almost a year ago, the shareholders of the fund signed the memorandum of understanding for launch of such a fund. India Infradebt will have an initial paid-up capital of Rs 300 crore.

The fund will meet the financing needs of infrastructure projects in the country. As the largest shareholder, ICICI Bank (along with wholly-owned subsidiary) holds 31 per cent stake in the IDF. Bank of Baroda, with 30 per cent stake, Citibank with 29 per cent stake and LIC with 10 per cent stake are the other shareholders.

There are large pools of global and domestic capital looking for attractive investment prospects. India Infradebt is a unique platform to match these funds and their appetite for long- term and stable investments with the compelling India infrastructure opportunity.

Pramit Jhaveri, CEO, Citi India, remarked as India targets investment of $1 trillion in infrastructure in the next few years, India Infradebt will help investors gain exposure to the best of these projects.

Suvek Nambiar has been appointed as CEO and Managing Director of India Infradebt.

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