must be determined by mutual agreement between the IDF and the concessionaire. The bonds must be in denomination of Rs 1 lakh each or up to Rs 10,000 each. The IDF and the concessionaire may allocate and bear the foreign exchange risks on bonds sold overseas.
“Any delay in repayment of principal or interest for and in respect of the bonds shall attract interest at a rate of 3% above the rate of interest applicable for the bonds,” the notification said.
IDFs can sell off bonds of the concessionaire to any other person without any notice if these are listed in any recognised stock exchange. IDFs can also extend a term loan to the concessionaire for an amount not exceeding 50% of its total exposure to the concessionaire and such a loan will be treated like a bond.
The tripartite agreement will cease if the company opts for early bond redemption.