New Delhi, Mar 22, 2007 (ABN Newswire) - Asian Development Bank (ASX: ATB) and the Infrastructure Development Finance Company Limited of India have signed a $50 million loan to support the development of infrastructure in the country.
"India needs substantial investment in infrastructure if it is to achieve its economic growth targets," said Seethapathy Chander, Deputy Director General with ADB's Private Sector Department. "The Infrastructure Development Finance Company performs a critical role as the only signifi cant domestic financial institution fully dedicated to infrastructure."
The loan supports the Government's strategy of encouraging private-sector participation in infrastructure development in light of the large investment requirements and the limited amount of public-sector financing available. The loan will also help free up Government resources from investments in infrastructure to invest in other types of expenditure, including social development projects.
The $50 million was offered without a Government guarantee and has a longer tenor than previous US dollar borrowings by other Indian financial institutions from the market. As a result, the loan will enable the company to offer dollar denominated sub-loans to eligible subprojects in the infrastructure sector in the country.
ADB assisted in the creation of the Infrastructure Development Finance Company in 1997 and continues to support the company. The loan agreement was signed in New Delhi on 20 March 2007.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 64 members - 46 from the region.
In 2005, it approved loans and grants for projects totaling $6.95 billion, and technical assistance amounting to $198.8 million.
Contact
Daniel Cooney Email: dcooney@adb.org Tel:+632-632-5672
Asian Development Bank
