ADB to raise $ 1bn through bonds to fund Public Sector projects

New Delhi, Jan 16 (UNI) Departing from its earlier practice for raising funds for the development of the private sector, the Asian Development Bank (ADB) today announced that it would raise one billion dollars through bonds in India to provide Rupee denominated loans for funding Public Sector Enterprises or state Government projects.

"We have sought permission from the government to raise one billion dollars. We expect the permission to be granted soon," ADB Principal Economist (Indian Resident Mission) Narhari Rao told newspersons here.

Funds raised through bonds earlier were for private sector projects, while the upcoming bonds are intended for the public sector project, Mr Rao said.

He, however. said there was no time-frame for disbursing the funds, but added that the focus would be to fund infrastructure projects.

The loans would be disbursed as and when there is a requirement, he said.

The bonds would entail 'best conditions' so that those could be passed on to the borrower, Mr Rao said.

UNI