ICICI Bank sees its core fund size touching $23 b
Indian infrastructure space will be the centre of investors’ focus over the next few years, with ICICI Bank anticipating a role in investment of $20-23 billion in this space by 2010-end.
“ICICI Bank believes that it would contribute $20-23 billion in the $500 billion capital expenditure requirement of the infrastructure sector in the next three years,” said ICICI Bank deputy managing director Chanda Kochhar.
According to the bank’s internal estimates, the sector would need about $500 billion, with infrastructure projects accounting for nearly half this amount through 2010. The country’s largest private lender had recently announced a $2-billion infrastructure fund, where it is pooling in capital from foreign investors to be invested in various infrastructure projects in India.
The bank is already believed to have received commitments for one-fourths of the fund size and is likely to contribute about 15% ($300 million) of its own funds. ICICI Bank is looking to follow this fund with a larger one worth $5 billion in 2-3 years. “The $2-billion fund is just the beginning. It is only a small part of our plans to invest in infrastructure projects,” she added.
This fund would be involved mostly in equity investment and icici Bank’s share would be about 15%,” she said. The fund, being managed by Credit Suisse, is likely to close in about three months. ICICI Bank has recently overtaken sbi, its public sector rival and the country’s biggest lender, in terms of assets in overseas business.