India Infradebt (Infradebt), which is the country’s first Infrastructure debt funds (IDFs) in the NBFC format, completed its first transaction by refinancing a road project of Zirakpur-Parwanoo section of NH-22.
The stretch is built by Himalayan Expressway, which is part of Jaiprakash Group.
The debt fund is sponsored by ICICI Bank along with Bank of Baroda, Citigroup and LIC.
Recently, rating agency Crisil assigned 'AAA’ rating to the proposed Rs 500-crore debenture issue of Infradebt. Roopa Kudva, Managing Director and CEO of Crisil said tight regulatory and operating framework for IDFs in the NBFC format prompted the agency’s highest rating to Infradebt.
Speaking at an event marking the handing over of the rating, Union Economic Affairs Secretary Arvind Mayaram said IDFs were a useful instrument for the private sector to raise funds.
A higher credit rating would enable IDFs to access long-term funds for infrastructure sector at competitive rates, Mayaram said.
Chanda Kochhar, Managing Director and CEO, ICICI Bank, told reporters that AAA rating for Infradebt would enable it to mobilise funds at competitive rates.
At least 50 per cent of the $1-trillion funding requirement for infrastructure during the 12 th Plan is expected to come from the private sector. There is a great demand among the foreign investors for long-term investment in the country.