Mumbai: India Infrastructure Finance Corporation (IIFCL) has tied up with Sumitomo Mitsui Banking Corp (SMBC) of Japan for raising $5 billion by 2012, to fund core sector projects in India.

The two have entered into a memorandum of understanding (MoU) under which SMBC would support core projects and help raise resources from Japanese and other global debt markets for IIFCL, to the tune of $5 billion, over a period of five years, IIFCL chairman S S Kohli said.

The Japanese bank would also offer customised solutions in the areas of project advisory, lending and structured finance, he said, adding, that the institutions would co-operate and compliment each other''s capabilities in creating deal flows of commercially viable infrastructure projects.

"We would be focusing on infrastructural financing for the energy, telecom and transportation sectors,'''' said SMBC India country head (international finance) Bharat Kaushal said.