IDFC is the first to file an offer document for Infrastructure Debt Fund
IDFC becomes the first to file an offer document with SEBI to launch an infrastructure debt fundvia the MF route. If launched, it will be the first fund in India under this category after FM announced setting up of Infrastructure Debt Funds (IDFs) in the Union Budget 2011-12 with an objective to facilitate the flow of long-term debt into infrastructure projects.
It is a close-ended scheme. The scheme will mature in the range of 5-15years. However, the exact tenor is to be defined at time of launch. As per SEBI guidelines, such schemes can be launched either as a close-ended scheme maturing after more than five years or an interval scheme with lock-in of five years.
The scheme will be managed by Suyash Choudhary. The investment objective of the scheme is to generate income and capital appreciation by investing mainly in infrastructure debt instruments.
The scheme will invest around 90% of the funds in debt securities, securitized debt instruments, SPV, bank loan and other permitted securities.Rest of the funds will be invested in money market securities or bank deposits. The scheme can invest up to 100% of the funds in unlisted assets. The investments may be in projects with long gestation periods.
The scheme provides growth and dividend option. No redemption/repurchase of units shall be allowed prior to the maturity of the scheme.The scheme is proposed to be listed on the stock exchange when the units are fully paid up.
The scheme does not target small investors. The minimum amount for application is Rs. 1 crore; additional investments can be made in multiples of Rs. 10 lakh. Each unit will be priced at Rs. 10 lakh in the New Fund Offer.
The scheme will be benchmarked against CRISIL Bond Fund Index. There is no exit load.
