ADB gives mln loan to IDFC

New Delhi, Mar 21 (UNI) Asain Development Bank (ADB) today said it has signed an agreement to give a 50-million-dollar loan to Infrastructure Development Finance Company Ltd (IDFC) to support the infrastructure development in the country.

The loan was offered without a government guarantee and has a longer tenor than previous dollar borrowings by other Indian financial institutions from the market, ADB said in a statement.

The loan will enable the company to offer dollar denominated sub-loans to eligible subprojects in the domestic infrastructure sector.

''India needs substantial investment in infrastructure if it is to achieve its economic growth targets,'' said Deputy Director General with ADB's Private Sector Department Seethapathy Chander.

The loan supports the government's strategy of encouraging private-sector participation in infrastructure development in light of the large investment requirements and the limited amount of public-sector financing available.

It will also help free up government resources from investments in infrastructure to invest in other types of expenditure, including social development projects.

UNI