The Hindu Business Line : IDFC to provide Rs 300 crore for Hyderabad international airport

The Managing Director of IDFC, Mr Rajiv B. Lall, said that IDFC as a lead institution, facility, and security agent is actively engaged in the project finance for the Rs 1,763-crore airport project.

The project has debt component of Rs 519 crore and Rs 300 crore from IDFC would be a major chunk in the funding arrangement made through a consortium of banks and financial institutions. The project is at an advanced stage of achieving financial closure, which is expected to be completed on schedule.

Speaking to newspersons after IDFC filed its draft red herring prospectus on May 18, Mr Lall said that the book-building process is aimed at investors, including Government and financial institutions offloading their shares.

Mr Lall said that the infrastructure development in the country has gathered momentum, offering scope for funding agencies such as IDFC.

"As a specialised infrastructure funding agency, IDFC is positioned strategically and exploring funding options in infrastructure projects such as roads, airports, and the energy sector."

In the fiscal gone by, IDFC recorded its highest-ever gross approvals, which were pegged at Rs 6,414 crore for 59 projects against Rs 5,720 crore for 83 projects in the previous year.

The cumulative approvals grew at a compounded annual growth rate of 36 per cent at Rs 24,594 crore for 198 projects and approvals net of cancellations were Rs 14,980 crore.

IDFC's assets are estimated at Rs 9,000 crore, Mr Lall said.

About 50 per cent of the Rs 850-crore private equity infrastructure fund has been committed and IDFC's share as a percentage of total private infrastructure financing is about 20-25 per cent. This is set to grow to about 30 per cent in the current year, Mr Lall added.

Referring to IDFC's proposed IPO, he said: "IDFC had started the process of redefining its business plan following approval by the company board and the Government, with the latter being the major shareholder with 35 per cent equity. We have filed for the IPO with the SEBI and expect to get approval within two weeks; the public offering is likely by June-end."

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