IFC to invest $1b

Mumbai Global financing agency International Finance Corporation (IFC) will invest close to $1 billion in India in the 12-month period from July 2008-June 2009.

The investment would mainly be concentrated in three areas – infrastructure, financial sector and climate change initiatives.

Even though some Indian infrastructure projects are facing problems in raising capital and achieving financial closure, IFC is confident about its investments in this sector. However, its approach will be cautious, given the current economic slump.

Some of IFC’s investments in infrastructure projects include investments in Tata’s Mundra power project, some hydro power projects in Himachal Pradesh and power transmission projects.

In the financial sector, IFC is planning to provide capital in the form of equity and debt to help banks, non-banking financial companies and micro finance institutions besides providing technical advisory services to these institutions.

It will also help in promoting financial inclusion and help the institutions to bring out innovative products.

Sectors that IFC does not invest in include real estate and companies producing alcohol and tobacco.