Non-banking finance company IL&FS Financial Services (IFIN) plans to fund Rs 70,000-crore aggregate of projects this financial year, and raise Rs 34,300 crore in the immediate-term, according to a top company official.
“We aim to fund Rs 70,000-crore aggregate of funds in financial year 2010-11. We need to raise 75 per cent of the amount soon,” IFIN’s Managing Director and CEO Ramesh Bawa said.
In financial year 2011-12, the amount required to be raised would increase to Rs 75,000 crore, he said.
The company has tied-up with five public sector banks — Bank of India, Punjab National Bank, Union Bank, Bank of Baroda and Canara Bank — besides Infrastructure Leasing and Financial Services (IL&FS), to form a joint syndication and underwriting platform for infrastructure projects.
“Through this syndication, we will jointly be able to provide partial or full underwriting of up to Rs 2,750 crore within a month,” he said.
IFIN is the investment-banking arm of the parent company IL&FS and specialises in infrastructure financing transactions, along with a combination of investment banking comprising debt syndication, corporate advisory and lending capabilities. At present, it was in the midst of raising an aggregate amount of Rs 49,000 crore for 10 domestic infrastructure projects, Bawa said.
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“We will be raising 70 per cent of the Rs 49,000 crore, or Rs 34,300 crore, for funding domestic infrastructure projects,” he said.
Out of the total, Rs 24,000 crore will be allotted for the transport segment. , while the remaining for a tunnel project in Jammu and Kashmir and a few power projects, Bawa added.
The money will be raised from domestic financial institutions and overseas sources.
The company has opened offices in London and Singapore, and plans to open another in Dubai, to act as hubs for the European, Asian and the Middle-Eastern financial markets, respectively.
The business abroad would constitute of advisory project syndication, financial structuring of infrastructure projects and mergers and acquisitions advisors, he said.
“Our overseas operations will supplement the overall business of the company,” he said.
IFIN is eyeing a profit before tax (PBT) of Rs 600 crore in financial year 2010-11, compared with Rs 500 crore in the year-ago period.
“With our business moving up, we expect a healthy jump in our PBT in the current financial year, at Rs 600 crore. In the next financial year, we expect it to climb to Rs 725 crore,” Bawa said.