Mumbai: IL&FS Infra Asset Management Company on Monday said it signed an agreement with eight public sector banks to acquire their infrastructure loans.
The lenders are Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce and Uco Bank, IL&FS said.
However, the company did not disclose the quantum of the loans bought from these banks by its Infra Debt Fund.
IL&FS Group Chairman Ravi Parthasarathy said, "the agreement will complement domestic banks in providing required funding to infrastructure sector and will be integral part of the IL&FS Group's efforts in taking the infrastructure growth story to the next level."
It’s Managing Director and Chief Executive Ramesh Bawa said, "We (the fund) are targeting an initial corpus of approx USD 1 billion and hope to increase the overall corpus to USD 5 billion under management in the medium-term."
Since the Government relaxed regulations for infra debt fund last year, IL&FS was amongst the first to announce its intent to launch such a scheme in partnership with LIC.
Its first fund was launched by Finance Minister P Chidambaram on February 9, 2013.