Citi, ICICI, BoB to Launch Infra Debt Fund

India’s private sector lender ICICI Bank and other financial biggies, including Bank of Baroda and Citi Financial, have decided to come together to set up India’s first infrastructure debt fund (IDF). They have joined hands to form a non-banking finance company (NBFC) to support infrastructure development in the country.

While ICICI Bank and BoB will pick up 30 per cent stake each, Citi Financial will have close to 30 per cent. The balance will be shared by other financial entities.

Syndicate Bank, Dena Bank and some other government-run lenders have agreed to take minority stakes in the IDF, while IDBI Bank will hold 30 per cent stake. The minimum capital requirement for setting up an IDF-NBFC is Rs 300 crore (Rs 3 billion).