Four financial institutions, led by ICICI Bank, have launched a $2 billion Infrastructure Debt Fund (IDF), which would finance its first project by the end of next month. This is the first IDF in the form of NBFC and will commence operations very soon. The capital of Rs 300 crore has been contributed by the members.
Besides ICICI Bank, the other sponsors of the India Infra Debt are Bank of Baroda (BoB), Citi and LIC. The ICICI group has 31 percent, BOB 30 percent, Citi 29 percent and LIC has 10 percent stake in the IDF.
This fund can finance projects of up to $2 billion, exuding confidence that IDFs can emerge as additional channels for infrastructure funding.
