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Prajakta asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

Suppose SBI gives loan of 2000 crore to finance a 8 lane highway

it was Public Private Partnership (Project)

Highway is constructed and it is operating successfully for 1 year, they may be collecting regular toll etc

now sbi can create a investment vehicle in the form of infrastructure debt fund, it can be a trust or a separate NBFC, we will discuss NBFC route as it is relevant for us, this NBFC will float a bonds of minimum 5 years of maturity where objective will be to takeover 2000 crore loan given by SBI, as it is operational for a year risk has already drastically reduced. Insurance companies, pension funds and other institutional investors can invest in it to get more return at less risk. once bonds are subscribed mutual fund will give money to sbi and take over infrastructure loan.

it is win win situation for everyone

but there are conditions

IDF-NBFC should have net owned fund of 300 crore

CRAR of 15% and so on

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