IFCI to raise Rs 3000 cr from debt to fund business growth

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New Delhi, Jun 24: The country’s oldest public sector financial institution IFCI plans to raise Rs 3,000 crore from debt, including bonds, during the current fiscal to aid expansion of its loan book.
The company is looking at fresh lending worth Rs 6,000 crore, including take-out finance where IFCI will pick up stake from other lenders during 2018-19.
“On an average, we will be targeting loan sanction of Rs 500 crore per month during this year. To fund this we have to raise Rs 3,000 crore from debt,” IFCI MD and CEO E S Rao told .
Besides, the lender expects to recover about Rs 2,000 crore from the resolution of non-performing assets (NPAs) during the current fiscal.
IFCI has also lined up some of its non-core fixed assets including commercial real estate for sale in 2018-19 provided they fetch good value, he said.
The net NPAs or bad loans of IFCI were at Rs 5,100 crore at the end of last financial year, March 31, 2018, he said.
Rao also said that Bhushan Steel resolution has brought to the firm Rs 329 crore and there is more in the pipeline.
Of the 12 large NPA accounts with over Rs 5,000 crore, identified as bad loans by Internal Advisory Committee of RBI for undertaking resolution under Insolvency and Bankruptcy Code (IBC) last year, IFCI has exposure in 6 such cases, he said.
The accounts referred to National Company Law Tribunal (NCLT) under IBC are: Bhushan Steel Ltd, Bhushan Power & Steel Ltd, Essar Steel Ltd, Jaypee Infratech Ltd, Lanco Infratech Ltd, Monnet Ispat & Energy Ltd, Jyoti Structures Ltd, Electrosteel Steels Ltd, Amtek Auto Ltd, Era Infra Engineering Ltd, Alok Industries Ltd and ABG Shipyard Ltd to NCLT.