IL&FS to collect $1 bn for infra debt fund by Sept
An official says that the IL&FS Financial Services expect to collect $1 billion of its targeted $5 billion infrastructure debt fund by September.
The IL&FS Infra Asset Management which manages the infrastructure debt fund has planned to collect around $1 billion and hopes to increase the overall amount of $5 billion under management in the medium-term.
Mr. Ramesh Bawa, managing director and CEO, says that there is enough interest from both domestic as well as global investors for investing in infrastructure projects in India. We are sure to collect $1 billion in the next 6 months.
Till now the company has collected Rs. 750 crore and expects to collect another Rs. 750 crore by March 31.
He also added that by 31 March they are able to raise almost Rs 1,500 crore, which is from the domestic investors and in the next six months they are sure that we will collect our targeted amount.
The organization has pooled in investment at least five PSU insurance companies, including General Insurance Corporation of India, Oriental Insurance, United India Insurance, New India Assurance and National Insurance, which will together pick 2% share each in the organization.
The IL&FS has also linked up with public sector lenders like Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce and UCO Bank for picking up share in the company.
He also mentioned that this step will provide confidence to the overseas investors. They are already in communication with Japanese, Australian, Chinese and Canadian firms for investment.
Mr. Bawa also added that the company is likely to do partnership with Japanese and Chinese firms before elections.
He also added that there is big interest from global investors but they are waiting for correct time to invest. They believe that after the elections they are able to sign the deal with the Japanese and Chinese companies.
The 1 billion dollar will be used for investment in projects like power, ports, road, healthcare, education and other sectors.
Source: The Financial Express
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