IL&FS Infrastructure Debt Fund raises additional $87M

IL&FS Infra Asset Management Limited (IIAML), an asset management company promoted by IL&FS Financial Services Limited (IFIN) to manage the IL&FS Infrastructure Debt Fund (IL&FS IDF), has received commitment of Rs 550 crore ($87 million), it said on Wednesday.

The fresh money has come for the fund’s second set of close ended schemes, IL&FS IDF – Series 2-A, 2-B and 2-C having maturities of 5, 7 and 12 years, respectively. With this milestone, the fund has achieved total commitment of Rs 1,380 crore since its inception in 2013, including its current asset under management of Rs 830 crore.

Ravi Parthasarathy, chairman of IL&FS Group, said, “Domestic infrastructure sector today urgently needs a new investor class to complement domestic banks in meeting the sector’s ever increasing funding requirement. Hence pooled investment vehicle like IDF managed by team of experts can play very important role of intermediating funds from insurance and pension fund investors into the infrastructure sector and diversify their holding beyond gilt edged securities for yield pick-up.”

Ramesh Bawa, managing director and CEO, IFIN and chairman-IIAML, said, “IL&FS IDF will keep on launching schemes in line with both investor appetite and opportunities available in the infrastructure sector and we propose to scale up the business significantly in coming years.”

After the regulations for infrastructure debt fund were announced by the government in 2011, IFIN was amongst the first institutions to announce its plan to launch a fund under mutual fund structure, in partnership with Life Insurance Corporation of India.

The fund, IL&FS IDF was launched in February 2013 and since then IIAML has completed two successful fund raising exercises.

With successful fund raise in IL&FS IDF’s second set of schemes, IIAML has also launched third set of schemes – 3-A, 3-B and 3-C of IL&FS IDF, which would primarily invest in higher rated infrastructure debt securities and is targeted to attract insurance and pension funds.

Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India’s leading infrastructure development and financial conglomerates. It was established in 1988 and been involved in private participation in infrastructure development across various sub-sectors and has thus evolved into a dominant, integrated developer and owner of infrastructure assets.

IL&FS’ primary strength is towards developing and executing projects in the areas of project development, project monitoring, construction and operations.

IFIN, a wholly owned subsidiary of IL&FS, is the investment-banking arm of the IL&FS Group providing project finance advisory & syndication, financial structuring and equity placements.

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