In a bid to provide boost for resource mobilisation for core sector projects, the Indian Infrastructure Finance Corporation is all set to kickstart its credit enhancement facility for the issuers of the infrastructure bonds. The company has already submitted a proposal in this connection to the government and it is waiting for the clearance from the government.
Talking to FE, IIFCL CMD SK Goel said, ?The idea is to provide guarantee to the bonds issued by the infrastructure companies so that long-term investors like pension fund can put their funds to buy these bonds money. We are looking at improving the credit rating facility to a maximum of two notches through the scheme,? said Goel. ?IIFCL may get the government approval within 10-15 days. We will then launch the scheme, which is aimed at providing credit enhancement facility to the bonds amounting to Rs 5,000 crore,? he Goel.
On takeout financing, Goel said, ?Four banks have already joined the scheme, including PNB, UCO Bank, Union Bank of India and Central Bank of India. He maintained that the row over the differential rate of interest has been settled after IIFCL brought certain changes into the scheme. The lender availing the takeout finance from IIFCL will pay a takeout fee not exceeding 0.3% per annum of the takeout amount to IIFCL.