India Infrastructure Finance , the state-owned lender that set up a fund with Blackstone Group LP and Citigroup Inc, plans to borrow $500 million from a group of banks in its first overseas loan.
The New Delhi-based company has hired BNP Paribas SA, Calyon and Standard Chartered Plc to raise the 10-year, government-guaranteed loan, said S S Kohli, chairman and managing director at India Infrastructure. It will use the funds to finance roads, airports, power plants and other infrastructure projects in the South Asian nation.
Prime Minister Manmohan Singh estimates India needs to invest $320 billion by 2012 on infrastructure to lift annual growth to 10 per cent by 2012 from 9.4 percent in the year ended March 31.
India Infrastructure signed an agreement in February with New York-based Citigroup, Blackstone and Mumbai-based Infrastructure Development Finance Co. to start a $5 billion fund to build roads, ports and other utilities. The fund will invest $2 billion in equity and the remainder in debt.
Read more in The Business Standard article.
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