IDFC II

completed

The proposed IFC financing is a ten year loan for IFC’s account of up to $50 million to Infrastructure Development Finance Company Limited (IDFC, the company). The loan is intended to help IDFC meets its growing needs for disbursements in infrastructure projects as well as to diversify its borrowing sources. IDFC was established in 1996 as a specialized financial intermediary to lead private capital to commercially viable infrastructure projects in India. IDFC’s role was to complement existing institutions undertaking infrastructure finance with focus on strengthening market mechanisms where these were evolving or had failed to develop. In addition to fund-based activities, IDFC also performs a policy advisory role by assisting the Central and State governments in preparing roadmaps for reform initiatives and the development of the regulatory framework. The company’s asset growth has been significant during the past two years, partly reflecting the improvements in the regulatory framework for infrastructure.