India's IDFC Alternatives raises $123 mln in real-estate debt fund

MUMBAI, March 20 Thu Mar 20, 2014 6:34am EDT

MUMBAI, March 20 (Reuters) - IDFC Alternatives Ltd, a private equity fund managed by India's IDFC Ltd, raised 7.5 billion rupees ($122.94 million) for a debt fund that will lend to developers of residential real-estate across the country.

The debt fund will be backed by housing projects that are under construction across Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune, IDFC said in a statement on Thursday.

Sluggish home sales and high interest rates in Asia's third-largest economy are putting pressure on debt-laden developers, that need to raise funds to recapitalise existing bank loans and invest in future projects.

IDFC manages about $2.4 billion across various funds. ($1 = 61.0050 Indian rupees) (Reporting by Indulal PM and Aditi Shah; Editing by Sunil Nair)

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