IIFCL launches its maiden Infrastructure Debt Fund scheme
To meet the long-term investment needs of the infrastructure sector, India Infrastructure Finance Company Limited (IIFCL), a Government Of India company has launched its first Infrastructure Debt Funds (IDFs) which will try to mobilize funds funds from sectors like insurance and pension funds as these are available for long-term.
For launching the maiden IDF, IAMCL, a mutual fund promoted by India Infrastructure Finance Company Limited (IIFCL), signed a Memorandum of Understanding (MoU) with three public sector banks and two financial institutions — HUDCO and its parent company IIFCL. While Canara Bank and HUDCO are the strategic investors of the IDF, Corporation Bank, Oriental Bank of Commerce and IIFCL are the other investors. The fund is aimed at catalysing investments by way of securitised debt instruments of infrastructure projects.
What will IDF do?
IDF scheme will mainly undertake investment in debt securities or securitised debt instruments of infrastructure companies, infrastructure capital companies or infrastructure projects, SPV (Special Purpose Vehicle). It would complement commercial banks in providing the required long-term funding for the infrastructure sector.