India : Credit Enhancement of Project Bonds

Nonsovereign Project | 43932-014

The project is a guarantee facility for ADB to issue partial credit guarantees without government counter guarantee, in amounts, in aggregate, of up to Rs7,168,000,000 Indian Rupees in favor of eligible Indian financial institutions providing credit enhancement for infrastructure project bonds in India.

Project Details

  • Project Officer
    Lambert, Donald J.
    South Asia Department
    Request for information
  • Country/Economy
    India
  • Modality
  • Sector
    • Finance
Project Name
Credit Enhancement of Project Bonds
Project Number
43932-014
Borrower / Company
  • Porbandar Solar Power Limited
  • Precious Energy Services Private Limited
  • Renew Wind Energy (Jath) Private Limited
  • Solitaire Energies Private Limited
Country / Economy
  • India
Location
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
7360-01 Guarantee Ordinary capital resources INR 640.00 million Closed
7360-02 Guarantee Ordinary capital resources INR 230.00 million Closed
7360-03 Guarantee Ordinary capital resources INR 230.00 million Closed
7360-04 Guarantee Ordinary capital resources INR 230.00 million Closed
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
  • Private sector development
Sector / Subsector
  • Finance / Money and capital markets

Gender
Project Sponsor(s)
  • Hindustan Power Projects Private Limited
  • ReNew Power Private Limited
Description
The project is a guarantee facility for ADB to issue partial credit guarantees without government counter guarantee, in amounts, in aggregate, of up to Rs7,168,000,000 Indian Rupees in favor of eligible Indian financial institutions providing credit enhancement for infrastructure project bonds in India.
Objectives and Scope
The facility will support credit enhancements of project bonds to address one of India's key development challenges, namely to meet the infrastructure investment target of about $1 trillion during the Twelfth Five-Year Plan for FY2012-FY2016. By providing credit enhancements, the facility will raise the credit rating of infrastructure project bonds to the required AA rating, thereby providing the critical missing step required to mobilize infrastructure financing from pension and insurance funds and promote development of the domestic corporate debt market.
Status of Development Objectives
Partial credit guarantee (PCG) provided to India Infrastructure Financing Company Ltd, (IIFCL) a participating infrastructure intermediary to cover its first loss guarantees on local bonds issued by eligible project companies
Status of Operation/Construction

ADB has provided PCG to IIFCL for project bond issuances by:

1.Renew Wind Energy (Jath) Ltd in September 2015

2.Porbandar Solar Power Limited in December 2015

Linkage to Country/Regional Strategy
ADB's India country partnership strategy for 2009-2012 emphasizes infrastructure development and is based on four pillars: (i) inclusive and environmentally sustainable growth, (ii) catalyzing investment, (iii) increasing results orientation and knowledge solutions, and (iv) regional cooperation. The facility supports the first three pillars, given the linkage between growth and infrastructure development and the objective of catalyzing infrastructure funds from a broad array of financial intermediaries. The country partnership strategy supports the role of financial intermediaries in providing long-term financing for infrastructure, emphasizing the PPP modality.

Safeguard Categories

Environment
FI
Involuntary Resettlement
FI
Indigenous Peoples
FI

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation

Contact

Responsible ADB Officer
Lambert, Donald J.
Responsible ADB Division
Public Management, Financial Sector, and Trade Division, SARD
Responsible ADB Department
South Asia Department

Timetable for assistance design, processing, and implementation

Concept Clearance
12 Sep 2011
Credit Committee Meeting
07 Aug 2012
Approval
20 Sep 2012
PDS Creation Date
23 Aug 2012
Last PDS Update
28 May 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Credit Enhancement of Project Bonds: Extended Annual Review Report Extended Annual Review Reports Jul 2018
Credit Enhancement of Project Bonds: Project Data Sheet (हिन्दी) Translated PDS Aug 2012
Credit Enhancement of Project Bonds Reports and Recommendations of the President Aug 2012

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Partial Credit Guarantee Facility for Credit Enhancement of Project Bonds - GMR Jadcherla Expressways Pvt. Ltd. Environment Compliance Audit Reports Jun 2012

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.