IDFC to list $1.25 bln India infrastructure fund-source

SINGAPORE, June 10 (Reuters) - Indian government-linked Infrastructure Development Finance Co (IDFC.BO) plans to list a $1.25 billion infrastructure fund, a source with direct knowledge of the matter said on Tuesday.

The fund, set to be India's first listed infrastructure fund, has raised over $500 million so far, said the source. He said the fund will likely list in India, but declined to give a timeline.

"The fund will buy assets such as ports, roads, airports and oil and gas pipelines that can generate steady, predictable returns for investors," the source said.

IDFC, which is 20 percent owned by the government of India and finances projects such as highways, ports and gas pipelines, launched the India Infrastructure Fund in March 2007, with Citigroup as the co-sponsor and lead investor.

The Indian government estimates about $500 billion will be needed to build new roads, ports, airports and power plants by 2012 to keep pace with a fast-growing economy. (Reporting by Daryl Loo & Koh Gui Qing, editing by Neil Chatterjee)