Source: The Economic Times

RADHIKA BHALLA

NEW DELHI: India Infrastructure Finance Company (IIFCL) — the government-owned special purpose vehicle (SPV) — has sought the Reserve Bank of India's (RBI) approval to enhance its limit for raising overseas funds by $1 billion.

Currently, IIFCL is allowed to borrow up to $500 million through the external commercial borrowings (ECB) window. The enhancement in the ECB cap to $1.5 billion is being sought in the light of the infrastructure fund recently established by IIFCL in a consortium with Citigroup and IDFC. "We are in discussions with the RBI on the issue of the ECB limit. As part of the MoU signed with IDFC and Citigroup, an amount of $3 billion in debt has to be arranged for the infrastructure fund. Thus, we have asked the RBI to consider raising our annual ECB limit by $1 billion from the current $500 million," SS Kohli, chairman and managing director, IIFCL told ET.

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Posted by pichu at March 27, 2007 9:19 AM