IFC's exposure to India to go up by 25 per cent

New Delhi, Oct 12: International Finance Corporation (IFC), the private sector arm of the World Bank Group, will increase its exposure to India in the current fiscal by 25 per cent, to touch a total lending of 500 million dollars.

The event was organsied to announce IFC's decision to invest 100 million dollars in Upper Tier 11 subordinate bonds with a final maturity of 15 years.

Mr Thunell said the total lending to India was to the tune of 1.4 billion dollars and spanned various sectors.

He said the priority would be to invest in infrastructure, but the other areas where the largest multilateral provider of financing for private enterprise in developing countries would give finance includes agri- businesses and rural development projects.

Mr Thunell said its effort would be to provide equity to companies which do not find it easy to raise funds from other sources. The large corporates and big banks do not have a problem in raising resources, he said.

He said the IFC would be willing to fund Special Economic Zones(SEZ) provided the projects are worthwhile. Besides, the IFC could consider providing loans for the development of townships.

Mr Thunell, however, said that IFC so far has not funded any SEZ project in India.

UNI