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IDFC to mop up Rs 5,500 crore for infrastructure fund

28 Apr 2012 Evaluate

Infrastructure Development and Finance Company (IDFC) is planning to mop up about Rs 5,500 crore for a new fund to invest in infrastructure in the country. The funds will be raised for IDFC Project Equity, in which Citigroup and India Infrastructure Finance Co., a state-owned infrastructure finance firm, are key investors.

The company already has a project equity fund, which manages about Rs 4,882.5 crore in roads, ports, airports and power projects. The new fund, which is set to be launched in the second half of this year, will also invest in such projects.

The existing IDFC Project Equity fund is part of the Rs 26,250 crore India Infrastructure Financing Initiative announced in early 2007 by IDFC, Citigroup, Blackstone Group and India Infrastructure Finance Company. The initiative was to have an Rs 10,500 crore equity component and Rs 15,775 crore debt portions.

IDFC’s core business is to provide debt finance for infrastructure projects. The company provides financial assistance to various segments such as power, roads, ports, telecommunications, Information Technology, Urban Infrastructure, Health care, education Infrastructure, food and agri business infrastructure, health care and tourism.

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