Fitch to rate Indian infrastructure debt funds

In a bid to inspire confidence in the Indian infrastructure sector among global investors, the central government has allowed India Ratings, the Indian arm of global rating agency Fitch, to rate infrastructure debt funds (IDFs) in the country. India Ratings is coming out with a new product for this purpose, which is expected to encourage overseas sovereign wealth funds and pension funds, among other investors, to invest in IDFs. A memorandum of understanding has been signed between eight public sectors banks and the IL&FS Infrastructure Debt Fund for take-out finance for the purpose. The banks are Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce and UCO Bank. The IDF is sponsored by Infrastructure Leasing and Finance Services Ltd, Life Insurance Corporation (LIC) and Hamon Group of Industries.