Mumbai, Aug 17: India Infrastructure Finance Company (IIFCL) today said it is targeting to raise Rs 11,000-crore from institutional and retail investors through bond issues by March 2012.
“We have written to the government to come out with a Rs 10,000-crore tax free infra bonds issue by March, which will be subscribed by institutions,” IIFCL's Chairman and Managing Director S K Goel told reporters here.
The company will also raise Rs 1,000-crore through retail tax saving bonds by end FY12, he added. In 2009, the company had raised Rs 10,000 crore through a tax free bond issue, Goel said adding it had also raised Rs 95-crore via the retail tax saving bond issue last fiscal. IIFCL has also firmed up plans of launching a Rs 5,000 crore debt fund to support long gestation infrastructure projects and is awaiting for infra debt fund guidelines from the Reserve Bank, he said.
“We have decided to start a NBFC (non banking finance company) for subsidiary for the infra debt fund and have already taken approval from our owners which is the government,” he said.
After the infra debt fund, Goel said the company also has plans of launching a Rs 3,000 crore equity fund. According to plan panel estimates, infrastructure sector will be requiring investments of USD one trillion in the 12th plan period (2012-17).
Goel was talking to reporters after signing a memorandum of understanding with public sector lender IDBI for takeout financing.
Under the agreement, IIFCL plans to take up to Rs 600 crore of advances to infrastructure from IDBI's books, Goel said.
IIFCL is targeting to grow its takeout financing books from Rs 70 crore to Rs 10,000 crore and will soon be easing certain norms to achieve the high growth target, Goel said. “We will be revising the takeout financing scheme. We have already sent a proposal to relax norms to the Cabinet and I expect a clearance in the next four to six weeks,” he said. It will also tie up with more banks to achieve the high target, Goel said.
Presently, it has a tie up with Union Bank of India, Central Bank of India and Punjab National Bank. Meanwhile, IIFCL also opened its second regional office in the city today and Goel said plans are afoot to have one on Kolkata as well.
IIFCL, which had a loan book of Rs 19,000 crore as on March 2011, is targeting to grow it to Rs 25,000 crore by end FY12, he added. PTI