Mumbai: February 9, 2013: IL&FS Financial Services Limited (IFIN) the financial services arm of the IL&FS Group launched IL&FS Infrastructure Debt Fund at the hands of Hon'ble Union Finance Minister Shri P. Chidambaram.
The function, which was held in Mumbai,was also attended by dignitaries from the Ministry of Finance, Financial Institutions and Regulatory bodies namely Dr Arvind Mayaram, Secretary - Economics Affairs from Ministry of Finance (MoF), Mr D- K Mehrotra, Chairman from Life Insurance Corp of India (LIC), Mr U K Sinha, Chairman from Securities Et Exchange Board of India (SEBI) and Mr Yogesh Agarwal, Chairman from Pension Fund Regulatory and Development Authority.
The IL&FS Infrastructure Debt Fund would be a listed Infrastructure Mutual Fund, which seeks to raise an initial corpus of Rs. 16 billion for investments across an array of infrastructure projects. It is targeted to achieve a second dose with a corpus of Rs.5000 crores. The IIDF will be a Close ended or interval Scheme with maturity of not less than 5 years and not greater than 15 years.
IFIN has established a 100% subsidiary, IL&FS Infra Asset Management Company Limited (AMC). The proposed IL&FS Infrastructure Debt Fund would be managed by the above AMC.
Mr. Ravi Parthasarathy, Chairman-IL&FS Group said, "It is a very proud moment for IL&FS Group to have launched IL&FS Infrastructure debt fund. This is a step forward in our continued efforts to drive India's infrastructure growth story to the next level."
Mr. Ramesh Bawa Managing Director and CEO, IL&FS Financial Services Limited said, "The government had stressed on the need for the infrastructure debt fund in the last Union Budget and it gives me immense pleasure to announce the launch of the IIDF fund.”
The allocation of the assets will be governed by SEBI regulations with at least 90% of the assets being allocated to investment in debt securities or securitized debt instruments of infrastructure companies, projects or infrastructure SPVs or bank loans in respect of completed and revenue generating infrastructure projects and the balance upto 10% of the corpus in a mix of instruments including mezzanine financing instruments of companies engaged in infrastructure development projects, whether listed on a recognized stock exchange in India or not, Money market instruments (including CBLO, Reverse Repo, CD/CP and T Bills)and bank deposits as permitted under the Regulations.
About ILEIFS
ILEIFS Financial Services Limited (IFIN) is the investment-banking arm of the IL&FS Group with a strong client base and provides end-to-end financial solutions including project finance advisory and syndication, financial structuring and equity placements. IFIN is very active in mobilizing project and corporate debt and equity for India Centric initiatives.
IFIN has a strong presence in domestic financial markets with strong relationships with Indian Financial Institutions, Banks and Insurance Companies. Huge investments are needed in India in both the Infrastructure sector and Manufacturing sector, to make India more competitive. In this context, India is a capital deficient economy and therefore it is important to supplement domestic resource pools with international pools of capital.
Towards this direction and objective IFIN intends to strengthen its international network of financial partners and currently has overseas presence in London, Singapore Hong Kong and Dubai.
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