IL&FS, LIC team up for $2 billion infra debt fund
11 May 2012
Infrastructure Leasing & Financial Services Limited (IL&FS), one of India's leading infrastructure development and finance companies, has teamed up with Life Insurance Corporation of India (LIC) for setting up an infrastructure debt fund (IDF) with a corpus of Rs10,600 crore (about $2 billion).
The two parties have signed a memorandum of understanding to set up the infrastructure debt fund, Ramesh C Bawa, managing director of IL&FS Financial Services Ltd (IFIN), said.
IFIN through its group companies expects to raise $1 billion (Rs5,300 crore) from international and domestic investors.
It is expected that 51 per cent of the contribution will come from foreign investors.
IFIN will operationalise, develop and manage the IDF, he said.
IL&FS was promoted by Central Bank of India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI).
The shareholding was broadened over the years to include the State Bank of India, Life Insurance Corporation of India, ORIX Corporation (Japan) and the Abu Dhabi Investment Authority.
IL&FS is focused on the commercialisation and development of infrastructure projects and creation of value added financial services.
