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World Bank's private arm to increase investments in Indian companies
By agencies
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Monday, 11 April 2005, 19:30 IST
NEW DELHI:World Bank's private lending arm IFC today said its exposure in India will go up to $500 million annually in the next five years from the present $300 million.
"India is the third largest in terms of IFC's annual commitment. We hope to increase it substantially from $300 to $500 million in 5 years," International Finance Corporation's chief economist Michael U. Klien said on the sidelines of a seminar here. He said the exposure would include equity investments, debt and guarantees to Indian companies.
"We are strategically looking at infrastructure," Klien said, adding the multilateral funding agency was also keen to pick up equity in retail, IT, telecom and manufacturing companies having world-class business models.
IFC's decision to hike its exposure in India assumes importance as its parent World Bank has already committed to double its assistance to three billion dollar annually in the next three years. While World Bank lends to government, IFC focuses on private companies.
"We are looking to invest in Indian companies, which are going abroad," Klien said adding IFC will help corporates comply with corporate governance, environmental and social issues when they go to other developing countries.
IFC is also planning to go to other cities especially in the South rather than restrict itself to Mumbai and Delhi.