Commercial operations of the country’s first Infrastructure Debt Fund (IDF) under the non-banking finance company structure were formally launched on Tuesday. The fund will meet the financing needs of infrastructure projects in the country
Finance Minister P. Chidambaram, handed over the licence for the fund to ICICI Bank’s CEO and Managing Director Chanda Kochar, at North Block, in the presence of other promoters.
As the largest shareholder, ICICI Bank (along with wholly-owned subsidiary) holds 31 per cent stake in the IDF which goes by the name India Infradebt Ltd. Bank of Baroda, with 30 per cent stake, Citibank with 29 per cent stake and LIC with 10 per cent stake are the other shareholders.
The handing over of the licence comes nearly a year after the formal signing of memorandum of understanding for launch of such a fund. India Infradebt Ltd will have an initial paid-up capital of Rs 300 crore.
“There are large pools of global and domestic capital looking for attractive investment prospects. India Infradebt is a unique platform to match these funds and their appetite for long- term and stable investments with the compelling India infrastructure opportunity. As India targets investment of $1 trillion in infrastructure in the next few years, India Infradebt will help investors gain exposure to the best of these projects,” Pramit Jhaveri, CEO, Citi India, said.
Suvek Nambiar has been appointed as CEO and Managing Director of India Infradebt Ltd.