US$ 700 Million ADB Loan for infra projects
The Government of India and the Asian Development Bank (ADB) have a loan agreement for US$ 700 million Loan for Second India Infrastructure Project Financing Facility (Project-1). This is second in a series of loans by ADB to India Infrastructure Finance Company Ltd (IIFCL) to support the Government’s infrastructure development agenda through enhancing the availability of the long-term funds for infrastructure financing.
IIFCL will provide funds to private sector entities at commercial terms with over 20-year maturity for infrastructure projects in the public private partnership (PPP) mode. This Facility will enable IIFCL to further the ongoing work of IIFCL in supporting the PPP projects. The period of utilization of this loan will be 5 years for three tranches. Earlier Facility for an amount of US $ 500 million was approved in 2007 by ADB.
The loan size is US$ 700 million, to be released in three tranches, over a period of three years. The 1st tranche will be US $ 210million. IIFCL will be the Executing Agency.