NEW DELHI, INDIA (16 November 2018) — The Asian Development Bank (ADB) and the Government of India today signed a $300 million loan agreement to support lending by India Infrastructure Finance Company Limited (IIFCL).
“The project will enhance availability of long-term finance for PPP projects, improve operational capacity of IIFCL, and expand the portfolio of infrastructure financing instruments available to IIFCL. The loan is expected to compliment the government’s infrastructure building efforts,” said Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed the loan agreement on behalf of the Government of India.
“ADB funding is expected to fund at least 13 subprojects through IIFCL, involving roads and renewable power generation, under the last tranche,” said ADB Country Director for India Mr. Kenichi Yokoyama, who signed the agreement for ADB.
The project supports the renewed effort of the Government of India in accelerating infrastructure growth through increased private sector investment. The project is relevant and responsive to the constraints to bank-based infrastructure financing, fiscal space creation, and repercussions on GDP growth.
The $300 million ADB loan is expected to help catalyze the financial closing of $2.4 billion in investments. In addition, the attached technical assistance will support IIFCL capacity development and will focus on IIFCL’s financial management and social and environmental safeguards.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.