Canara, Syndicate and Vijaya Banks sign MoU

Bangalore, Dec 20: India Infrastructure Finance Company (IIFCL), a Special Purpose Vehicle floated by the Government for long term funding of infrastructure projects today signed MoUs with Public Sector Canara, Syndicate and Vijaya Banks to ensure greater flow of funds to infrastructure projects.

The area of cooperation under the MoU also includes creation of a deal flow of infrastructure project for IIFCL, due diligence and risk profiling of projects, syndication of funds, co-financing and a host of other banking services including cash management, treasury and non fund based services.

A new entrant into the financial sector IIFCL, formed in January this year had already firmed up 40 projects with a total funding of Rs 6800 Crores. It had tie up with Canara Bank for 13 projects with the Bank Financing Rs 900 Crores with a similar exposure from IIFCL.

Similarly the Syndicate Bank was exposed in four projects and the Vijaya Bank in two projects with the funding from the banks being Rs 300 crores and Rs 200 crores respectively.

IIFCL Chairman and Managing Director S S Kohli, speaking on the occasion, said the institution was in negotiations with various multilateral agencies such as the World Bank and Asian Development Bank and also bilateral agencies such as KFW to raise around Rs 7000 Crores.

He said that IIFCL has signed MoUs with nine banks so far besides the IL&FS and a few more MoUs were in the pipeline.

UNI