GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES
UNSTARRED QUESTION NO 4241
TO BE ANSWERED ON 06.05.2008
Joint initiative of IIFCL Citi Bank and Blackstone Group.
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state: -
(a) the total investments in infrastructure so far made by India Infrastructure Finance Corporation Ltd. (IIFCL);
(b) the status of the joint initiative between IIFCL, Citi Bank and Blackstone Group; and
(c) the likely impact on Indian Infrastructure due to recent financial problem in Citi Bank and Blackstone Group?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL) …
(a): As on 31st March 2008, IIFCL has sanctioned loans for 78 infrastructure projects amounting to Rs. 16,969 crore. These projects involve a total project cost of Rs. 1,18,703 crore.
(b): Agreement for the India Infrastructure Finance Initiative was signed on 15th February 2007 between IDFC, IIFCL and Citigroup with the objective of facilitating large scale capital investments in infrastructure assets in India. The overall targeted capital to be raised under this initiative is USD 5 billion comprising:
(i) Upto USD 3 billion in long tenor external commercial borrowings with maturities exceeding 10 years to be raised by IIFCL in several tranches over three years, subject to RBI approval, for financing infrastructure projects in India.
(ii) Upto USD 2 billion in equity capital to be raised by IDFC and Citigroup from international and domestic sources including IIFCL in tranches for an unlisted fund with a first tranche of USD 1 billion. Under this, IIFCL is to contribute $25 million to the equity fund. The first closure of the equity fund has taken place at USD 523.5 million and the documents for the same were signed on 11th March 2008. The fund is expected to be launched shortly after receiving approval of the Reserve Bank of India.
(c): Information is being collected and would be laid on the table of the Rajya Sabha.