43932-014: Credit Enhancement of Project Bonds

Project Data Sheet (PDS): Overview


Description

The facility will demonstrate a commercially viable and replicable model for undertaking credit enhancement of infrastructure project bonds in India. Risk-based pricing of the guarantee facility will result in efficient price discovery and sustainability. This will lead to the matching of long-dated infrastructure assets with long-dated insurance and pension fund liabilities, which will help establish market benchmarks. The pilot transactions will demonstrate the viability of the PCG product in the infrastructure bond market and the precedents developed in the pilot phase will facilitate the rolling out of the credit enhancement product in an effective manner. Successful pilot transactions will in particular (i) enable mainstream credit enhancement as a new product and develop internal capacity by absorbing best practices through the partnership with ADB in the pilot phase, (ii) encourage other interested financial institutions to follow the IIFCL example once commercial viability has been established and offer the product, and (iii) demonstrate the applicability of the product across infrastructure subsectors. Read More

Country India
Borrower/Equity Investment Name
Project Number 43932-014
Project Type or Modality of Assistance Private Sector Loan and Equity
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7360
Approval Date 20 Sep 2012
Geographical Location tbd
Sector Finance
Subsector Money and Capital Markets
Safeguard Categories Environment: FI
Resettlement: FI
Indigenous People: FI

 

 

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Project Data Sheets (PDS)

Translated PDS

Responsible ADB Officer
Vivek Rao
Request for information

Responsible ADB Department
South Asia Department

Responsible ADB Divisions
Public Management, Financial Sector and Trade Division, SARD

PDS Creation Date
23 Aug 2012

Last PDS Update
23 Aug 2012

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