IDFC plans to raise $ 300 m through bonds

Infrastructure Development Finance Company (IDFC) plans to raise $300 million through overseas loans to diversify resource profile.

It raised $150 million through international loans with five year maturity in October-December 2013 and is currently negotiating with banks for $300 million loan.

IDFC has been raising funds from international markets regularly through bonds and loans. This round of fund raising is meant to diversify sources and keep the interest of international investors alive, IDFC senior director (Resources) S J Balesh said.

The all in costs covering heads like credit spreads and hedging costs of currency for overseas loans are on par comparable with lending rate that banks charge for domestic loan, he added.

Meanwhile, the company, which is also a banking licence aspirant, posted a 10 percent rise in its consolidated net profit at Rs 501 crore in Q3 ended December 2013 from Rs 455 crore in Q3 of 2012-13.

Managing Director of IDFC Vikram Limaye said given the challenge with infrastructure development, the loan growth of may be flat for the financial year. The gross loan book rose by 1 per cent from Rs 54,104 crore as on December 31, 2012 to Rs 54,552 crore as on December 31, 2013.

Gross approvals increased by 8 per cent from April-December 2012 at Rs 18,838 crore to Rs 20,376 crore in April-December 2013. However, gross disbursements fell  41 per cent from Rs 13,070 crore to Rs 7,659 crore at end of December 2013.

The pressure on asset quality is expected to continue in the financial year, given the slowdown and issues grappling that many segments of infrastructure sector have been facing over last few quarters.

Its gross non-performing loans rose to 0.6 per cent of loans at end of December 20013, up from 0.3 per cent at end of December 2012.