A large portion of the $6 billion raised by Kohlberg Kravis Roberts & Co (KKR) in its Asian II Fund could be deployed in Indian business ventures, reports suggest. It may be learnt that the American private equity (PE) fund KKR raised $6 billion through Asian II Fund and this became the largest pan-Asian PE fund raised so far. KKR invested over 25 percent of its first Asian fund in India, picking up stakes in half-a-dozen companies for $1.1
Category: Infrastructure Finance
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RBI permits ECB facility for NBFC-AFCs
Reserve Bank of India (RBI) allowed Non-banking finance companies (NBFCs) categorised as Asset Finance Companies (AFCs) to avail of external commercial borrowing (ECB). But the central bank imposed certain conditions for such NBFCs to access ECB window. One of the condition is that they would avail ECB under the automatic route with minimum average maturity of five years. Further, the funds raised through the ECB route must
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CGTMSE may rationalise guarantee fee
Media reports indicate that the Credit Guarantee Fund Trust for Medium and Small Enterprises (CGTMSE) plans to rationalise the annual guarantee fee payable by banks for insuring their loan to small business units. Presently, CGTMSE collects guarantee fee at 1 per cent of the loan limit per annum throughout the tenure of the loan
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Indian economy may grow 6% in FY14: Deutsche Bank
A report by Deutsche Bank says the Indian economy may grow at a rate of 6 percent in 2013-14, compared to 5 percent in the previous financial year. The foreign brokerage expects the current account deficit (CAD), which touched a record high of 4.8 per cent in 2012-13, to decline to 3.8 per cent in the current financial year on the back of softening commodity prices
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Yes Bank to raise capital for business development
Media reports indicate that YES Bank may raise capital by issuing shares through qualified institutional placement (QIP) or any other route in order to fund its expansion plan. The company may also consider Global Depository Receipts, American Depositary Receipts, follow-on public issue or by any other appropriate mode as decided by the Capital Raising Committee, the bank informed the Bom
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Housing finance firms may use ECB to fund projects
National Housing Bank (NHB) expects Housing finance companies (HFCs) to raise funds through the external commercial borrowings (ECBs) as Reserve Bank of India (RBI) reviewed ECB norms. HFCs may avail ECBs to fund their affordable housing projects, NHB, which is the regulator of the sector said. RV Verma, Chairman of NHB said the regulator received an application from HDFC for ECB and it expe
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India Infradebt to issue Rs 5 bn worth debentures
In order to finance infrastructure projects, India Infradebt is in the process of issuing Rs 500 crore worth of debenture. The debenture was assigned AAA/Stable rating by CRISIL. ICICI Bank, Bank of Baroda, Life Insurance Corporation of India and Citicorp Finance (India) jointly promoted Infradebt as an infrastructure debt fund (IDF) in the non-banking financial company
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RBI trains guns on speculative position in NDF mkt
Reserve Bank of India (RBI) feels that foreign units of Indian companies and foreign companies in which part of equity is held by Indian firms have a role to play in the depreciation of rupee against the dollar. The central bank feels that these entities may be taking speculative position in the non-deliverable forward (NDF) market resulting in the depreciation of rupee against the
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RBI relaxes norms for bank credit to MFIs
Reserve Bank of India (RBI) relaxed the norms for categorising priority sector lending of commercial banks to microfinance institutions (MFIs). According to the present norms, banks can categorise credit extended to MFIs as priority sector lending if
if at least 75 per cent of loans given by MFIs is for income generating activity. Now, the central bank relaxed this limit to at least 70 per cent. Thus, according to the relaxed norm, bank credi
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Oil ministry adopts finance ministry’s terms of reference
Reports indicate that the union petroleum ministry adopted the terms of reference proposed by the finance ministry for the committee set up under former Planning Commission member Kirit S Parikh. Originally, the oil ministry had proposed that the committee be asked 'to revisit the current pricing methodology of import parity or trade parity' for petro