The Hindu Business Line : IIFCL to disburse Rs 11,000 cr this fiscal

Kolkata, Sept. 4 India Infrastructure Finance Company Ltd (IIFCL) has set for the current fiscal a disbursement target of about Rs 11,000 crore, according to its Chairman, Mr S.S. Kohli.

The company has disbursed about Rs 6,300 crore as on date. It has also set a refinance target of Rs 10,500-11,500 crore to be achieved by March 2010, he said.

“We disbursed Rs 4,891 crore as on March 2009 and in the first four months of the current year our disbursals have grown by about Rs 1,500 crore so we are hopeful of achieving our target this year,” Mr Kohli said.

IIFCL, he said, proposes to raise Rs 3,000 crore through bonds by March 2010. It already has raised Rs 1,000 crore, he said. This was over and above Rs 30,000 crore, which the Government allowed it to raise from the domestic market as tax-free bonds to enable, refinancing various projects in the core sector, particularly highways and port.

The company has signed an agreement with the World Bank for a $1.2-billion loan spread over the next five years and is also planning to sign an agreement with the Asian Development Bank for raising $700 million.

This apart, under the credit enhancement scheme, IIFCL has appointed credit rating agency ICRA for framing a policy on long-term infrastructure bonds. It expects a policy on infrastructure bonds to be in place in the next three months, after ICRA submits its report.

“The bond market for infrastructure finance needs to be developed for long-term financing. We intend to create a policy for the bond market, and have appointed a consultant for that,” he said.

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