3i in Indian infrastructure partnership

India Infrastructure Finance Company Limited (IIFCL) and 3i Group have announced a strategic partnership on infrastructure equity financing for projects in India.

IIFCL was incorporated in January 2006 as a wholly government owned company for the purpose of providing financial support to infrastructure projects and facilities in India.

The Indian government believes that the total requirement for infrastructure funding could be as much as €235.6bn over the next five years. Investments arising from this partnership will primarily be in power, ports, logistics, airports and road projects in both early stage and mature infrastructure operations.

The agreement was signed by S S Kohli, chairman and managing director of IIFCL, and Chris Rowlands, 3i’s managing partner in Asia, in the presence of Palaniappan Chidambaram, the Finance Minister of the Government of India.

Speaking at the signing, Kohli said: “Keeping in view the huge requirement of funds in the sector, the collaborative arrangement between IIFCL and 3i will give us a strong resource for the funding of infrastructure projects.”

Commenting on the partnership, Rowlands said “We are excited by the opportunity to participate in the development of infrastructure projects in India, which are critical for sustaining the country’s growth. We are proud to be associated with IIFCL given their strong infrastructure financing franchise in the country.”