IIFCL eyes Rs. 11,000 crore through bonds by FY12

India Infrastructure Finance Company (IIFCL) on Wednesday said it is targeting to raise Rs. 11,000 crore from institutional and retail investors through bond issues by March, 2012.

"We have written to the government to come out with a Rs. 10,000-crore tax free infra bonds issue by March, which will be subscribed by institutions," IIFCL Chairman and Managing Director S K Goel said.

The company will also raise Rs. 1,000 crore through retail tax saving bonds by this fiscal-end. In 2009, the company had raised Rs. 10,000 crore through a tax-free bond issue and it had also raised Rs. 95 crore through the retail tax saving bond issue last fiscal, Goel added.

IIFCL has also firmed up plans to launch a Rs. 5,000-crore debt fund to support long-gestation infrastructure projects and is awaiting infra debt fund guidelines from the Reserve Bank, Goel said.

"We have decided to start a NBFC (non banking finance company) for subsidiary for the infra debt fund and have already taken approval from our owners which is the government," he said.

After the infra debt fund, Goel said the company also has plans of launching a Rs. 3,000-crore equity fund. He was talking to reporters after signing a memorandum of understanding with public sector lender IDBI  for takeout financing. Under the agreement, IIFCL plans to take up to Rs. 600 crore of advances to infrastructure from IDBIRs.s books, he added.

According to Plan Panel estimates, infrastructure sector will require $1 trillion in the 12th plan period (2012-17)..

IIFCL aims to grow its takeout financing books from Rs. 70 crore to Rs. 10,000 crore and will soon ease certain norms to achieve the high-growth target, Goel said.

"We will be revising the takeout financing scheme. We have already sent a proposal to relax norms to the Cabinet and I expect a clearance in the next four to six weeks," he said.

It will also tie up with more banks to achieve the high target, Goel said. Presently, it has a tie-up with Union Bank of India, Central Bank of India and Punjab National Bank.

Meanwhile, IIFCL also opened its second regional office in the city on Wednesday and Goel said plans are afoot to have one in Kolkata as well.

IIFCL, which had a loan book of Rs. 19,000 crore as on March 2011, is targeting to grow it to Rs. 25,000 crore by FY12-end, he added.