India's first infrastructure debt fund assigned 'AAA' rating
The fund, jointly promoted by ICICI Bank, Bank of Baroda, Life Insurance Corporation (LIC) and Citicorp Finance (India), awarded its first sanction letter to a road project.
Economic Affairs Secretary Arvind Mayaram said a high ratings would make infrastructure debt funds competitive in the refinancing market.
The first sanction letter was given to a project by Jaiprakash group for refinancing of NHAI-bid road-project of Zirakpur-Parwanoo section of NH-22 built by Himalayan Expressway Limited.
Mayaram said debt funds would play an important role in financing of infrastructure projects in the country.
India targets to invest nearly $1 trillion in infrastructure between 2012-17. Half of this money is expected to come from private sector.
"We require about $1 trillion for infrastructure sector, out of which $500 billion have to come from private sector. Therefore, we have to provide multiple instruments to the private sector to raise funds," Mayaram said at a function organised at the finance ministry in North Block.
Managing director and chief executive of ICICI Bank Chanda Kochhar said the "rating would enable Infradebt to access long-term funds for Indian infrastructure sector at low interest rates from domestic markets as well as pension and insurance funds."
IANS