Amount ( Cr) Tenure years years

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1 Rating Rationale Brickwork Ratings assigns rating to IIFCL Mutual Fund Infrastructure Debt Fund Series- II aggregating 1500 Cr and reaffirms rating to IIFCL Mutual Fund Infrastructure Debt Fund Series- I aggregating 300 Cr Brickwork Ratings (BWR) has assigned Ratings 1 to IIFCL Mutual Fund Infrastructure Debt Fund Series- II aggregating 1500 Cr and reaffirms rating to IIFCL Mutual Fund Infrastructure Debt Fund Series- I aggregating 300 Cr Scheme Name Scheme Type Amount ( Cr) Tenure Previous Rating ( Jan 2014) Present Rating (Feb 2015) IIFCL Mutual Fund Infrastructure Debt Fund Series- II IIFCL Mutual Fund Infrastructure Debt Fund Series-I Close Ended Infrastructure Debt Fund years years (BWR Triple A idf mfs) (BWR Triple A idf mfs) (BWR Triple A idf mfs) Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made. It should be noted that a rating assigned to an IDF is not indicative of the probability of default of the fund, but is indicative of the credit quality of the fund considering the underlying portfolio, the management and sponsorship of the fund. The rating also incorporates BWR s assessment of the fund s investment objectives and policies, management quality of the Asset Management Company (AMC) and investment team, Operational as well as risk management policies and procedures and regulatory compliance. The fund house is expected to manage the portfolio such that it meets the criteria to qualify for the BWR AAA idf mfs. We would also like to reiterate that inferences cannot be on the same lines as other Mutual Fund instruments, which are generally open ended and are substantially subscribed by retail investors. We have factored that IDF instruments are close ended and substantially subscribed by Institutional Investors. 1 Please refer to for definition of the Ratings Mar 2015

2 The rating should not be treated as a recommendation to buy, sell or hold the rated scheme/ fund. It also does not comment on the NAV volatility and the future performance of the fund, neither does it indicate the ability of the AMC to make timely payments to the fund s investors. BWR reviews and monitors the ratings assigned on an on-going basis. In case of a change in the credit quality of the portfolio, management, policies and processes, etc, BWR will evaluate the effect of the same and may revise the ratings assigned. The rating, interalia, factors, strong credentials of IIFCL as a sponsor, experienced & qualified management personnel of the Asset Management Company IIFCL Asset Management Company Limited (IAMCL) and firm commitment from the Strategic Investors mainly IIFCL and discussions with other Institutional Investors for the investment. The credit quality of the underlying securities in the portfolio of the infrastructure Companies has to be suitably ascertained before making investments. The Company has already indicated that investments would be made in the debt instruments of Infrastructure Companies/Infrastructure Projects where projects will be in both green field and brownfield projects and with a minimum of investment grade rating and in line with SEBI (MF) Regulation 1996, as amended from time to time.. However, rating is sensitive to generic risks associated with investment in Infrastructure Debt Instruments such as effects of natural calamities on such projects and any changes in government regulations. Also, road projects are dependent on traffic-flow, power projects are highly dependent on various factors like availability of coal, wind energy, off-take of power, timely payment for power supplied, etc. Such factors may hamper the ability of the borrower company/ies to make the payments on time. IIFCL Asset Management Company Limited (IAMCL) IIFCL Asset Management Company Limited (IAMCL) is a public limited company incorporated under the Companies Act, 1956 on 28 th March 2012, having its Registered Office in New Delhi. IAMCL has been appointed as the Asset Management Company (AMC) of the IIFCL Mutual Fund (IDF) by the Trustee vide Investment Management Agreement (IMA) dated 7 th August 2012, and executed between the Board of Trustees of IIFCL Mutual Fund and IIFCL Asset Management Company Limited. IAMCL has also been granted the approval from SEBI to act as the Asset Management Company of IIFCL Mutual Fund (IDF). Constitution of the Mutual Fund: IIFCL Mutual Fund (IDF) IIFCL Mutual Fund (IDF) (the Mutual Fund or IIFCL MF ) has been constituted as a trust on 17 th August 2012 in accordance with the provisions of the Indian Trusts Act, 1882 with India Mar 2015

3 Infrastructure Finance Company Limited (IIFCL), as the Sponsor. The Trust Deed has been registered under the Indian Registration Act, The Mutual Fund was registered with SEBI on 24 th January 2013 under Registration Code MF/071/13/01. Sponsor IIFCL Mutual Fund is sponsored by India Infrastructure Finance Company Limited (IIFCL). The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs10,000/- to the Board of Trustee as the initial contribution towards the corpus of the Mutual Fund. Trustee The Sponsor has appointed a Board of Trustees for managing the Mutual Fund. The Trustees shall discharge its obligations as Trustee of IIFCL Mutual Fund. The Trustee ensures that the transactions entered into by the IIFCL Asset Management Company Limited ( IAMCL ) are in accordance with the SEBI (MF) Regulations 1996 and will also review the activities carried on by the IAMCL. IIFCL MF is administered by a Board of Trustees constituted as per SEBI norms & is comprising of IIFCL (represented by Sh. Sanjeev Ghai, CGM), Central Bank of India (represented by Sh. KK Taneja, Field General Manager), Punjab National Bank (represented by Sh. H K Parikh, Deputy General Manager) and Oriental Bank of Commerce (represented by Sh. AK Jain, General Manager). Update on IIFCL Mutual Fund Infrastructure Debt Fund-Series I The Investment for Series I of Rs300 Cr has support of Strong credentials of IIFCL as a sponsor, experienced & qualified management personnel of the Asset Management Company (IAMCL), Rs.130 Cr of investment had come from IIFCL (which is approx. 42% of the fund size) and firm investments from five Strategic Investors for the total investment of Rs.300 Cr. The investments initiated since August 2014 across seven Infrastructure Companies/ Projects are in Investment Grade ratings. The investment portfolio as on Jan 09, 2015 comprises of Debt 88.16% (including Deposits with Banks/FI s to the extent of 12.16%), Money market Instruments 10.62% and Net receivables/payable 1.22% in line with SEBI norms. IIFCL Mutual Fund Infrastructure Debt Fund-Series II (Scheme Details) The proposed fund is a 10 years Close Ended Infrastructure Debt Fund Scheme aggregating Rs 1500 Cr under Private/Public placement of Units of Rs 10 Lakhs each. Placement Period likely to open on 31 st March 2015 and Placement Period Close date will be informed by way of an Mar 2015

4 addendum to be hosted on The Scheme shall operate with availability of minimum mobilisation of Rs500 Cr and a group of minimum five investors. IIFCL shall continue to remain the strategic investor and discussions are on with other Life & General Insurance Companies, Pension Funds, Banks & FIs for the Investment The scheme being a close-ended scheme, funds received on account of re-payment of principal, whether by way of pre-payment or otherwise, with respect to the underlying assets of the scheme, shall be re-invested in the scheme in the assets as specified above. If the investments as specified above are not available, such funds may be invested in bonds of Public Financial Institutions and Infrastructure Finance Companies. Investment in Debt Securities or Securitized Debt of infrastructure companies can be up to 100% of the net assets of the Scheme. Infrastructure includes the sectors as specified by Government of India via Ministry of Finance, RBI & SEBI, from time to time, as also detailed under section Eligible Infrastructure Sectors. The allocation mentioned above shall be applicable on the life-cycle of the Scheme and shall be reckoned with reference to the total amount raised by the Scheme. The cumulative gross exposure debt shall not exceed 100% of net assets of the Scheme with certain clauses for it to be not considered while calculating the cumulative gross exposure. Under normal circumstances, the asset allocation of the Scheme would be Debt securities or securitized debt instrument of: 1. Infrastructure holding companies, or 2. Infrastructure projects or special purpose vehicles which are created for the purpose of facilitating or promoting investment in infrastructure or 3. Bank loans** in respect of completed and revenue generating projects infrastructure Companies or special purpose vehicles. 4. Convertibles including mezzanine financing instruments of companies engaged in infrastructure, infrastructure development projects, whether listed on a recognized stock exchange in India or not or Money market instruments or Bank Deposits **Investments in bank loans shall be made only through the securitization mode The scheme will attempt to achieve the investment objective by allotting 90% of the net assets of the scheme would be invested in the Debt securities or securitized debt instruments. In the scheme it is proposed to make investments in Infrastructure projects as provided by RBI List of Sub-Sectors for Infrastructure Lending and as revised from time to time. Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may keep the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, G-Secs, T-Bills or invest in Collateralised Borrowing and Lending Obligations (CBLO), subject to regulation Mar 2015

5 and/or guidelines issued by SEBI from time to time. All investments shall be based on the rating prevalent at the time of investment. However, in case of an instrument having dual ratings, the most conservative publicly available rating. Investment can be made in Funding to Infrastructure Companies or Infrastructure Capital Companies (minimum investment grade rating), Bonds of Public Financial Institutions (PFI) or Infrastructure Finance Companies and some money market/ liquid securities.in accordance with the SEBI (MF) Regulations, as amended from time to time, Mutual Fund/ IAMCL may disclose indicative portfolio of infrastructure debt fund scheme to its potential investors disclosing the type of assets the mutual fund will be investing in. However, Mutual Fund/ AMC have not given any indicative yield in any communication. Analyst Contact Relationship Contact Phone Media Contact Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented as is without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons Mar 2015