The Infrastructure Development Finance Company Limited (IDFC) is India's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services.

Since our inception in 1997, we have embraced the mandate of 'Enabling India'.

Our growth has been driven by the substantial investment requirements of the infrastructure sector in India combined with the growth in the Indian economy over the last several years. Our ability to tap global as well as Indian financial resources makes us the acknowledged experts in infrastructure finance. This, coupled with a strong synergy between the company management and key shareholders, and a dedicated team of over 550 people makes us an organization that is committed to improving the face of India's infrastructure sector.

We work closely with government entities and regulators to advise and assist them in formulating policy and regulatory frameworks that support private investment and public-private partnerships in infrastructure development.

 

OUR BUSINESSES

-Corporate Investment Banking
-Alternative Asset Management
-Public Market Asset Management
-IDFC Foundation

 

SECTORS

Energy

We finance projects for electricity generation, transmission and distribution as well as projects in the oil and gas industry. At IDFC Project Finance, we believe that our efforts have played a significant role in changing the focus of power sector reform from adding generation capacity without a significant focus on demand to the privatization of electricity distribution. This sector is one of our focus areas and makes up for 38.30% of our total exposure in the infrastructure sector.

-Electricity Generation
-Electricity Transmission
-Electricity Distribution
-Oil & Gas Pipelines

 

Urban Infrastructure

With the expected increase in the percentage of India's urban population from 26% in 2001 to 36% in 2011, there is intense demand for the development of urban infrastructure. Though most of the spending in building urban infrastructure in the short to medium term is likely to be in the public sector, we believe that the private sector has select opportunities for infrastructure initiatives in this segment.

Telecommunication and IT

We provide financing to new projects and acquisition finance to enable strategic activity in the telecommunications sector. While this sector is fairly mature and comprises some very large players, there is opportunity in financing the new entrants who are poised for accelerated pan-India growth. We have been leveraging this customer base, while focusing on other opportunities in the telecom infrastructure space.
At IDFC Project Finance, we secured some large deals in this space during 2009-10, which has significantly increased the Company’s exposure in this sector. 
Our strategy in this sector is to provide support to the existing established players who require incremental financing for their capital expenditure for 2G expansions and project financing to roll out 3G and broadband wireless access services. At IDFC Project Finance, we expect enhanced funding opportunities arising from any consolidation in the sector. We believe that we are well positioned to play a significant role in any such activity.

Transportation

At IDFC Project Finance, we work on the financing of roads, civil aviation, airports, ports, container terminals and gas and oil pipelines. With a policy vision that focuses on national highway development at the rate of 20 kms a day, a large number of projects in this sector are in the pipeline.
A paradigm shift away from awarding small packages covering short road sections to longer stretches with significantly larger package sizes is set to change the way these projects are financed. Much of this activity is reflected in the increase in approvals in this sector, while gross disbursements are gradually picking up.

-Roads
-Ports
-Airports

 

Industrial and Commercial Infrastructure

Given the uncertainties in the commercial real estate sector we have been cautious in this segment. However, we continue to invest in this space in a calibrated manner based on the past record of various promoters.

-Special Economic Zones (SEZ)
-Industrial Parks

 

OUR PRODUCTS

Senior Debt Financing

Senior Debt Financing forms the largest component of our financing portfolio. It is provided through loans or in the form of subscriptions to debentures, making up 56% of our loan portfolio. It ranks ahead of other debt obligations of the borrower with respect to security and right of payment.
Our senior debt financing is fully secured and has recourse to the project assets in the event of any default. In most cases, senior debt provided by us is substantially collateralized through documents such as pledge of all or part of the sponsors' equity holding in the borrower or an assignment of rights under the various project contracts.

Mezzanine Products

We provide financing in the form of mezzanine products to strengthen project structures. These products comprise of preference capital and subordinated debt. Our Mezzanine products are layered in a firm's capital structure between equity and senior debt and act as an additional tier to the capital structure.
Our Mezzanine instruments are subordinated in right of payment to senior debt and have only a second charge on the borrower’s assets. These subordinated financing structures carry higher risk as compared to senior debt but have the potential of earning higher returns.

Principal Investments

Our Principal equity investments in infrastructure companies provide financing to them and help us to continuously explore opportunities that result in accepting a higher level of risk. Through this business, we also focus on exploring and developing innovative financing structures for our investments.
Our principal investment business plays a key role in generating non-interest income for us. These investments could be strategic in nature and we may also make them through our treasury operations. We could also invest in non-infrastructure related businesses that in our view are capable of generating attractive returns.

Non-Fund Based Products

Through our non-fund based products, we issue guarantees for a project’s performance and payment obligations. Our guarantees enhance the credit ratings of the underlying financial instruments and enable projects to secure financing from a wider spectrum of sources. These include borrowings from commercial banks, foreign lenders and the debt capital markets. We also issue guarantees to enable project companies to open letters of credit.
Our non-fund based products also consist of Take-out financing. This product is designed to address the maturity mismatches and the risk appetite of certain categories of lenders, allowing them to participate in infrastructure financing. It also helps us to take over outstanding loans from project lenders after 5 years because of our access to funds with long-term maturity.

 

IDFC Foundation

Since inception, IDFC has been a socially responsible company with varied initiatives. These enterprises, dealing with PPP Capacity Building, Policy and Corporate Social Responsibility (CSR) are now collectively administered under the rubric of the IDFC Foundation.

At IDFC Foundation, we play a leading role in policy formulation and advocacy, institutional capacity building to structure public-private partnerships, providing government transaction advisory services and promotion of inclusive infrastructure through CSR initiatives. These activities enhance our parent company’s knowledge base, reinforce it as a credible player in the infrastructure sector and fulfill its wider social goals.

The first Indian signatory to the United Nations Principles for Responsible Investment, IDFC supports its deserving sustainability initiatives through us.