IFC to buy minority stake in ILFSAMC
IL&FS (a conglomerate with diversified business in Engineering, construction and other fields) has contacted International Finance Corporation (IFC), a member of the World Bank group to seek loans for a $5-billion infrastructure debt fund. According to an official who has the direct knowledge of the development mentioned that the company is planning to raise this fund by selling a minority stake in the company.
By 2015 this Mumbai-based infra development and finance company has decided to raise an infra debt fund through IL&FS Asset Management Co (ILFSAMC). This fund will be used to lend to companies building power plants, roads and ports. They will re-finance these projects and will take over the loans which the banks have paid to these original projects.
IFC is keen to buy a minority stake in the Asset Management Company (AMC) and provide longer tenure loans to ILFSAMC. Both the parties discussed in details about this plan last fortnight in Washington, DC. The AMC is also in active discussions with several pension funds from Canada and Australia.
Canadian pension funds could loan up to $200 million to the fund. They have been active investors in ILFS Private Equity fund and have been active in India recently. ILFS has been actively roping in investors from across the globe. They had kicked off their first infrastructure debt fund in December 2013 and are roaring to make a big mark in this field.
Source- The Economic Times
AMC has reached an agreement to sell 20 % stake to Sumitomo, IFC is keen to buy a minority stake in the AMC, IL&FS in talks with IFC to sell minority stake, infra debt fund through IL&FS Asset Management Co (ILFSAMC) by 2015
