State-run infrastructure financing company IIFCL today said the World Bank will disburse $1.2 billion loan next month for its various infrastructure projects.
"$1.2 billion, we have been told yesterday, that they (World Bank) are doing (disbursing it) in April meeting," India Infrastructure Finance Company (IIFCL) Chairman SS Kohli told reporters on the sidelines of a FICCI summit here, when asked about assistance from the World Bank.
IIFCL has signed an agreement with the Asian Development Bank for a $200 million loan, he said.
Till March 17, the company had raised Rs 2,600 crore from the second tranche of the Rs 10,000 crore tax-free bonds programme.
On further issue of bonds, he said, "After expiry on March 31, we can talk about it. The (earlier) target was March 31 that has been done. Next guidelines have not been received."
From the first tranche, IIFCL had raised Rs 7,370 crore of tax-free bonds during the third week of January. The bond, which was guaranteed by the government, will give a 6.85 per cent tax-free return to investors and have a maturity period of five years.
In a bid to give thrust to infrastructure financing, the government decided to allow IIFCL to raise Rs 10,000 crore through tax-free bonds by March 2009 to support a Public Private Partnership programme of Rs 1,00,000 crore in the core sector, including highways.
The fund raised is being utilised for refinancing eligible infrastructure projects, particularly in the highways and port sectors.
The decision to allow IIFCL to raise Rs 10,000 crore through tax-free bonds was announced by the government in the first stimulus package in December 2008.
Subsequently, in January the government came out with the second stimulus package permitting IIFCL to raise another Rs 30,000 crore through tax-free bonds in 2009-10.
IIFCL is expected to leverage the Rs 30,000 crore it has been allowed to raise from tax-free bonds and provide about Rs 75,000 crore to projects in the core sector.
About the loan disbursal to infrastructure sector during the fiscal, Kohli said Rs 4,500 crore has been disbursed. We may touch Rs 5,000 crore.
"We would exceed the target," he said adding, IIFCL has sanctioned 88 infrastructure projects worth $3.8 billion and in case of 75 projects financial closure has been done.
