UK unit of IIFCL to raise $1 billion
IndiaInfrastructure Finance Co. Ltd (IIFCL)’s UK subsidiary aims to raise $1 billion in foreign parts by knocking the alternate foundations of funding to lend more. Currently, IIFC (UK) is financed by $5 billion Reserve Bank of India (RBI) line of credit. Since the central bank of the country is implausible about extending the credit limit, IIFC (UK) is looking out for other funding options.
If allowed legally, the company aims to enlarge its funding of procurements of Indian firm overseas. A government official talk about this entire system, he says “IIFC UK will raise $1 billion this year to meet its funding requirements.” IIFC (UK) provides loans and co-finances external commercial borrowings to the infrastructure companies building projects in the country. It helps the companies to manage their expenses outside of India.
HoweverIIFC (UK) has sanctions of around 5 billion dollars in pipeline and payments made by the company are 1.2 billion dollar since its inception in the year 2008. Its loans are treated under external commercial borrowings and it lends financial support to the companies working under public-private partnership (PPP) projects.
Source: The Mint
IIFC UK will raise $1 billion, IIFCL, India Infrastructure Finance Company (IIFCL), IndiaInfrastructure Finance Co. Ltd, mechanism proposed by the IIFCL, Reserve Bank of India
