IDFC launches infrastructure financing initiative

New Delhi, Feb 15 (UNI) Infrastructure Development Finance Co Ltd (IDFC), Citigroup Inc (Citi), India Infrastructure Finance Co Ltd (IIFCL) and Blackstone Group Holdings LP today announced the launch of 'India Infrastructure Financing Initiative' to deploy about five billion dollars for infrastructure projects in the country.

The plan is to deploy about two billion dollars in equity capital and three billion dollars in long term debt financing with maturities exceeding ten years.

The equity financing programme will be managed by IDFC and will invest in greenfield, brownfield and operating projects primarily in roads, power, airports, ports, and industrial and commercial infrastructure.

IDFC, Citi and Blackstone will together invest 250 million dollars. The balance is expected to come from reputable international investors as well as selected domestic institutional investors including IIFCL.

The debt financing will be channeled through IIFCL in several tranches over the next three years for projects appraised by IDFC and also certain banks and financial intermediaries.

The agreement was signed by Dr Rajiv B Lall from IDFC, Mr Sanjay Nayar from Citi, Mr S S Kohli from IIFCL and Mr Robert L Friedman from Blackstone here.

Finance Minister P Chidambaram, in whose presence the signing ceremony was conducted, said, ''This initiative is an important milestone in our search for innovative solutions to meet the vast challenge of financing the development of India's burgeoning infrastructure sector.'' IDFC Chairman Deepak Parekh said the initiative sets a new benchmark for collaboration between a domestic partner such as IDFC with deep domain knowledge in infrastructure, foreign financial institutions with wide reach into global financial markets and the Government of India to solve its infrastructure financing problems.

Reiterating Citi's commitment to India, Mr Charles Prince, Chairman and CEO of Citi had said earlier his company was excited about this opportunity to make an impact on the development of infrastructure projects, which are critical to the country's growth prospects and to be a partner in this important initiative, which was born out of a request from the Government of India at the Indo-US CEO forum held in December 2006.

Mr Stephen A Schwarzman of Blackstone stated India being an important part of Blackstone's global strategy, this initiative would give them an opportunity to make a meaningful contribution to India's infrastructure development.

Finance Secretary Shri Ashok Jha and the Secretary Financial Sector Vinod Rai were also present on the occasion.

UNI