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Bonds credit-enhanced by IIFCL

Bonds credit-enhanced by IIFCL

IIFCL expects to finalise more such transactions soon.

Government-owned infrastructure financier, The India Infrastructure Finance Company Limited (IIFCL) announced the issuance of India´s first infrastructure bond, credit-enhanced by it. The rating of these bonds was enhanced based on first-loss partial credit guarantee by IIFCL under its Credit Enhancement Scheme. Asian Development Bank was involved and participated in the transaction as IIFCL´s backstop guarantor.

The transaction involves issuance of Rs 451 crore bonds, partially guaranteed by IIFCL, thereby enhancing its rating to AA(SO), by Renew Wind Energy (Jath) Ltd. The issuer is a subsidiary of Renew Power Ventures Pvt. Ltd and operates a 84.65 MW wind power project in Maharashtra. IDFC Ltd. acted as sole arrangers and underwriters to these bonds.

PM inaugurates new JNPT terminal
The country´s biggest container traffic handler Jawaharlal Nehru Port (JNPT) has achieved another milestone in its journey to become a world-class maritime hub. Prime Minister Narendra Modi has laid the foundation stone for the fourth container terminal, proposed to be developed at an estimated cost of Rs 7,915 crore on DBFOT basis.

Nitin Gadkari, Union Shipping Minister informed the PM that the work has been awarded to M/s Bharat Mumbai Container Terminals Pvt. Ltd. (SPV of PSA) at a revenue share of 35.790 per cent. He also informed the PM that the concession agreement was signed on May 6, 2014 and awarded on December 22, 2014. Shipping secretary Rajive Kumar said the project is to be taken up in two phases with the first phase costing Rs. 4, 719 crore and the second, Rs 3,196 crore. This will add a container handling capacity of 4.8 million TEUs (2.4 million TEUs in each phase). On completion, the total length of the berth will be 2,000 m.

The terminal is the biggest FDI, BOT port project in India with a total investment of Rs 7, 915 crore, and will provide world-class facilities for international trade and ease the burden on existing container terminals that are operating at almost full capacity.


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