Infrastructure-Debt-Fund
What is Infrastructure Debt Fund

Infrastructure Debt Fund (Idf)

  • IDF is an emerging investment vehicle which as per regulations can be created in the form of Mutual Fund or NBFC to invest in the infrastructure sector
  • IDF in Mutual Fund (IDF – MF) format is regulated by SEBI (Mutual Funds) Regulations, 1996, whereas IDF in NBFC format is governed by Reserve Bank of India (RBI).
  • Investors invest in Rupee denominated units of scheme of an IDF-MF
  • The Asset Management Company (AMC) of the fund manages the funds of the various IDF schemes.
  • It Provides an opportunity to long term investment by FIIs, Pensions Funds, Insurance Cos, Sovereign Wealth Funds and other investors

Key Characteristics - IDF MF

Structure
  • Mutual Fund with focus on long term Infrastructure Debt
  • Close-ended
  • Dividend & Growth Option
Capital
  • 100% financed through issuance of rupee-denominated units
Maturity
  • Minimum tenor of 5 years with option of structuring for longer tenors
  • Interval scheme with a lock-in period of 5 years for investors
Investments
  • Infrastructure sector at any lifecycle stage of the project (greenfield/brownfield) with investments of
  • 90%-debt securities / securitized debt instruments of
    a) infra companies
    b) SPVs, and/or
    c) Projects of infra sectors
    Up to 10%-Equity/money market instruments/bank deposits

Investor
  • Minimum investment of Rs. 1 Cr with Face Value of Rs. 10 Lakh/unit
  • Minimum 5 investors with none of the single investor to hold more than 50% of net assets of the scheme
Credit Rating of Eligible Asset
  • Atleast 70% investment in Investment Grade rated, i.e., BBB- and above
Regulator
  • Securities Exchange Board of India (SEBI)

IIFCL Mutual Fund (IDF) - Structure

IDF-Structure