BS reported that IIFCL Ltd will extend a USD 500 million loan to Sasan ultra mega power project.

The 4,000 MW power project, being developed by Reliance Power, a is likely to achieve financial closure within the next few weeks.

A senior official of IIFCL (UK) said that the loan was one of the 9 projects worth USD 900 million sanctioned by the overseas arm of IIFCL. The Mumbai Metro project will get USD 12 million.

IIFCL Ltd was incorporated in London in April last year with an initial capital of USD 20 million. The Reserve Bank of India will lend USD 5 billion from the country’s foreign exchange reserves to the company, which will further lend to infrastructure companies for their capital expenditure outside India.

The official said that the first tranche of USD 250 million from the RBI was likely to come in February. The RBI will subscribe to the bonds issued by IIFCL.

Meanwhile, IIFCL, set up to finance infrastructure projects, has received 180 proposals so far and has sanctioned 88 projects which have an approved loan amount of INR 18,000 crore.

(Sourced from Business Standard)