An amount of
$700-m loan has been approved for India Infrastructure Finance Company Ltd
(IIFCL) by the Asian Development Bank (ADB). IIFCL is a state owned
organization that focuses on infrastructure development. Considering the part
of the funding, the development bank based at Manila will, support take-out
financing in India, for the first time. As part of this, take-out finance will replace
bank loans, thus freeing banks to invest in Greenfield projects. This will also
ease their sector and borrower exposure limits.
The financial specialist also went on to say
that the market was not ready for a product like take-out finance. However, the
condition was now was such that take-out finance could play a major role in
infrastructure development. It
is believed that the foremost
loan of $400 million will have two components — direct loans to project
developers and take-out finance. For take-out finance, around 40 per cent of
the first tranche is likely to be allocated. It is also noteworthy that the IIFCL’s
take-out finance scheme has been operational since November 2012. Until now, IIFCL
has distributed Rs 2,300 crore under this scheme.
As a loan towards India Infrastructure Finance Company Ltd (IIFCL), an amount of $700-m loan has been approved by the Asian Development Bank (ADB). IIFCL is a state owned organization which focuses on infrastructure development.
With the new
financing facility that will accelerate Infrastructure Investment Facility in
India, will also focus on supporting public-private partnership projects in
highways, roads, airports, urban infrastructure and some renewable energy
projects. According to a lead finance specialist in ADB’s South Asia
Department, ADB’s funds will be provided through two loans under a multi-tranche
financing facility. The first tranche of $400 million will be released from
January, the second of $300 million will be mostly released in 2016, according
to the lead finance specialist from ADB. The payment of the second loan centers
on the performance of the first tranche.
As a loan towards India Infrastructure Finance Company Ltd (IIFCL), an amount of $700-m loan has been approved by the Asian Development Bank (ADB). IIFCL is a state owned organization which focuses on infrastructure development.
No comments:
Post a Comment