IDFC to list $1.25 billion India infrastructure fund

by Dave

Infrastructure Development Finance Co (IDFC) plans to list a $1.25 billion infrastructure fund, a source said on Tuesday, 10 June, underlining the country’s need for cash to modernize its power and transport.
A source with direct knowledge of the fund, which would be India’s first listed infrastructure fund, said it has raised over $500 million so far. He said the fund will likely list in India, but declined to give a timeline.
“The fund will buy assets such as ports, roads, airports and oil and gas pipelines that can generate steady, predictable returns for investors,” said the source, who declined to be identified because the fund raising was still ongoing.
Investors are increasingly looking for firms with stable earnings prospects as they seek refuge from recent turmoil in financial markets.
According to India’s five-year economic plan up to 2012, the country needs to attract $500 billion worth of investments to upgrade its infrastructure to achieve a 9% average annual economic growth rate.
Annual growth in the March quarter was 8.8%.
Around 30% of the spending is expected to come from the private sector