IDFC raises $855-mn under India Infrastructure Fund

MUMBAI: The much-touted India Infrastructure fund set up to finance major road, port and power projects has so far garnered $ 855-million in multiple closures over a period of six months, a top IDFC official said.

The $ 855-million would form a part of $ 2-billion equity of the $ 5-billion infrastructure initiative launched in early 2007, IDFC Project Equity Company's Principal, Aditya S Aggarwal said.

Originally $ 2-billion is raised as equity and $ 3 billion as long-term debt by India Infrastructure Finance Company (IIFCL), for financing infrastructure development in the country.

So far, $ 855-million has been invested to acquire 26-49 per cent stake holding by IDFC Project Equity in five domestic infrastructure projects, Aggarwal said.

IDFC project equity, Citi Group, Global private equity fund Blackstone and Indian Government had jointly launched the $ 5-billion Infrastructure initiative in February, 2007 with an initial corpous of around $ 250-million.

The fund later received equity investments from above ten domestic and international investors to fill up the $ 2-billion equity component, Aggarwal said.

The fund managers expect to close India Infrastructure Fund, which has initially targeted $ 1.25-billion, over the next six months, Aggarwal said.