Government-owned Industrial Finance Corporation of India Ltd (IFCI) plans to lend to infrastructure and manufacturing sector companies.
According to CEO and Managing Director of IFCI Malay Mukherjee, there is a great need to fund infrastructure projects in India.
"Majority of finance in India comes from banks for a short term of three to five years and with higher interest rates. Today, there is great need to fund the infrastructure sector. For the country's growth, institutions (like IFCI) must come forward and give loans on a long term basis," Mukherjee said.
He was in the city to address a press conference about public issue of secured, redeemable, non-convertible debentures (NCDs) by IFCI Ltd to raise Rs 2,000 crore. The issue is already open and will be available for subscription until November 21.
The NCDs, having face value of Rs 1,000 each, are offered for tenures ranging from five years, seven years and 10 years.
On the question of IFCI's focus areas, Mukherjee said that manufacturing and infrastructure would be at the centre stage.
"We want to focus on two sectors; one is infrastructure and the other is manufacturing. China did well in the manufacturing sector. Thus, we need to give a push to the manufacturing sector in India. For long term loans to corporates, we also need to have long-term funding. That is why we came up with this public issue of NCDs with long tenures," Mukherjee said.
