IFC to invest $300 mn in Indian ultra-mega projects; in talks with Tata Power

World Bank private equity arm, the International Finance Corporation (IFC), is in talks with Tata Power for providing long-term debt funding, along with other major ultra-mega power projects. Funding would be in the range of $200-300 mn. IFC is also looking at other infrastructure projects, especially in the road sector.

IFC is also looking at picking up equity stake and upper Tier-II instruments in the banking sector. It has recently invested $150 mn in ICICI Bank’s upper Tier-II bonds and $100 mn in HDFC Bank’s similar issue, and is open to more such investments in banks which will help them meet their capital requirements.

IFC already has a big-ticket exposure of over $100 mn in Tata Steel and Cairn Energy. It also has an RBI approval for raising $1 bn-equivalent of rupee funds. IFC has the fourth-largest exposure to India after Russia, Brazil and Turkey.

Read the article in The Economic Times.

IFC to invest $600 mn this year

International Finance Corporation (IFC), the private equity arm of the World Bank, intends to invest around $300 mn for the year ending June 30, 2007, reports The Economic Times. For the year ended June 30, 2006 IFC had invested $ 410 mn. The financial sector accounted for the largest chunk of IFC’s exposure in the first half of its financial year (July to December). Over 70% of IFC’s exposure will be through the debt route and the rest through equity stakes in Indian companies. The biggest chunk of $150 mn went into ICICI Bank’s Tier-II bond issue announced in October. Another $100 mn was invested in HDFC Bank’s Tier-II bond issue. Infrastructure is one of the priority areas for IFC, which is now keen on funding ultra-mega power projects. Healthcare is another focus area of the corporation.