IFC proposes $100m debt investment in Tata Group’s Infopark Properties

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of $100 million (Rs 835 crore) in Infopark Properties Limited (IPL) to help the latter settle an outstanding debt, per a disclosure.

The proposed investment, which is in the form of a senior secured loan, will be utilised to refinance debt worth Rs 1,900 crore raised by IPL to set up Ramanujan Intellion Park (formerly called Ramanujan IT City), the disclosure added.

IPL is a 51:49 joint venture between Tata Realty and Infrastructure Limited (TRIL) and Canada Pension Plan Investment Board. The joint venture has so far seeded two assets—Intellion Park Chennai and Intellion Edge Gurgaon.

The Ramanujan Intellion Park in Chennai is a special economic zone (SEZ), mainly offering six Grade-A offices. The project is being developed at a cost of about Rs 3,417 crore, including Rs 1,900 crore debt, according to Tata Realty’s 2022-23 financial year report.

The park, which is spread over 25.27 acres, is strategically located at the beginning of Old Mahabalipuram Road at Taramani—Chennai’s IT Corridor—where renowned IT companies have their hubs.

Besides providing financial assistance, IFC will also provide non-financial additionality by helping IPL obtain EDGE certifications for the project’s assets, the disclosure added.

India has the largest volume of investments globally for IFC, with a portfolio of over $8 billion of which approximately 36% is in equity investments, it disclosed in a press statement recently. IFC’s long-term financing, including mobilisation, more than doubled from $1.3 billion in FY22 to $3 billion in FY23. The total of IFC’s commitments and board-approved funding so far in FY24 has already surged to $3.8 billion (as of April 30, 2024).

IFC has committed over $15 billion in India since its first investment in 1958. Investments are spread over 215 clients in India.

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