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| IPDF-II |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25003 |
| Company name | India Project Development Fund II |
| Country | India |
| Sector | Collective Investment Vehicles |
| Environmental category | FI-2 |
| Department | Infrastructure |
| Status | Completed |
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| Date SPI disclosed | May 8, 2006 |
| Projected board date | June 12, 2006 |
| Previous Events | Signed: August 8, 2006
Approved: June 26, 2006 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| This proposed IFC investment is for up to 20% of the capital of the India Project Development Fund–II (IPDF-II) – a project development facility structured as a Fund. IPDF-II will make equity or quasi-equity investments in companies created to develop projects in the Indian infrastructure sector. Through such investments, IPDF-II will finance the early-stage development of infrastructure projects, selling its participation to third parties for implementation. Project companies would undertake the full range of development activities, depending on the nature of the project, from funding studies to negotiating contracts. Project companies could be entirely private, or joint-ventures with the government on a PPP basis. |
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| Project sponsor and major shareholders of project company |
| The Fund Manager will be IL&FS Investment Managers Limited (IIML), a publicly traded private equity Fund Manager with $900 million in assets under management. IIML’s main shareholder is Infrastructure Leasing & Financial Services Limited (IL&FS), which will be a core investor in IPDF-II. IL&FS is a leading financial services institution in India with a focus on infrastructure development, and a presence in investment and merchant banking, distribution and asset management. IL&FS has total assets of $1.25 billion, and net worth of over $160 million. |
| Total project cost and amount and nature of IFC's investment |
| The total size of IPDF-II is expected to be in the region of $24.7 million. The proposed IFC investment is for up to 20% of the Fund’s capital. |
| Location of project and description of site |
| IPDF-II will invest in infrastructure projects across India, and across all infrastructure sectors (surface transport, power, railways, ports, water supply, etc), as projects are identified. |
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| Anticipated development impact of the project |
| Infrastructure investment is among the most important challenges facing the Indian economy, with growth constrained by bottlenecks in the power, water, airport, road, port, and rail sectors. The development of infrastructure projects – in all sectors and through all modalities – remains time consuming and expensive. Discussions with leading players in the public and private sector indicate that a project development facility that develops well structured, bankable infrastructure projects can play an important role in helping India to address critical infrastructure needs, with important impacts both on growth and poverty reduction. |
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| IFC's expected development contribution |
| IFC is assessing a range of mechanisms through which to improve early stage infrastructure project development in its client countries. With respect to IPDF-II, in addition to financing, IFC will contribute its expertise in structuring funds, and implementing international best practice, as well as its extensive experience in project development. |
| Environmental and social issues - Category FI-2 |
| IPDF-II’s early involvement in developing infrastructure projects will be undertaken with due consideration of IFC’s Performance Standards on Social and Environmental Sustainability. Procedures for environmental and social screening will be incorporated into the review of project development opportunities to ensure compliance with the relevant and applicable standards. Appropriate capacity and resources will be established within the Fund Manager, IIML, (including both internal staff and the use of outside consultants and experts) to ensure performance and to promote social and environmental outcomes of the Fund’s investments. |
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| For inquiries about the project, contact: |
IL&FS Investment Managers Limited
IL&FS Financial Centre
9th Floor, Plot Number C-22, G-Block
Bandra Kurla Complex, Bandra East
Mumbai – 400 051, India |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennslyvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Webform: http://www.ifc.org/ifcext/home.nsf/Content/WebFeedbackForm
E Mail: Webmaster |
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