IIFCL to raise Rs 1200 cr through infrastructure bonds

State-owned Indian Infrastructure Finance Company Ltd (IIFCL) said that it would raise Rs 1,200 crore for lending to infrastructure projects, through long term infrastructure bonds.

"The proceeds from the tax saving bonds would be used to fund infrastructure projects such as roads, power, ports, airports and urban infrastructure," IIFCL CEO Pradeep Kumar told reporters here. "At present we have sanctioned loan of Rs 27,500 crore for 154 projects being implemented in 21 state across the country out of which 17 projects are in Gujarat," Kumar said. About 51% lending is in power sector, 39 per cent in road building projects and five per cent in airports, rest in other infrastructure projects, he added. According to Kumar the funds raised would be utilised for direct lending to infrastructure projects, refinancing and takeout finance.
The company has lent over Rs 5,000 crore to companies that include Adani power, Essar Power, L&T which are involved in implementation of infrastructure projects in Gujarat. Kumar said that his company has an agreement with the Japan Bank for International Cooperation (JBIC) which will fund the Delhi-Mumbai Industrial Corridor (DMIC) through the IIFCL.