Infrastructure finance India

Recent Developments: Efforts to improve access to alternative funding sources

August 8, 2017

The past year witnessed a host of measures and initiatives taken by the government, the apex bank and the capital market regulator to ease financing and expand the investor base for infrastructure projects amidst constrained […]

Reviving Confidence: Infrastructure sector to witness increased funding despite challenges

August 8, 2017

During the past year, the government has taken various measures to resolve the manifold issues plaguing the infrastructure sector and revive investor confidence in the space. The high level of toxic loans, the majority of […]

Emerging Options: Alternative funding mechanisms for infrastructure

August 8, 2017

Traditionally, infrastructure investments have been financed with public funds. Governments were the main actors in this field, given the inherent “public good” nature of infrastructure and the positive externalities often generated by such facilities. However, […]

The initial public offering (IPO) market for the economy has shown signs of revival since 2015-16. The year 2016-17 recorded the highest issuances ever witnessed since 2010-11. However, a similar trend was not mirrored in […]

Bailing out Banks: ARCs to play a greater role in stressed asset resolution

June 4, 2017

In the recent past, there has been a slowdown in the sale of stressed assets by banks to asset reconstruction companies (ARCs). Valuation mismatches and slow recovery rates have retarded the deal consummation process. Banks […]

On the Rise: Growing interest among investors for operational assets

May 8, 2017

Asset acquisitions in the infrastructure space have been on the rise in the past 15-20 months. While some companies are offloading assets to deleverage their balance sheets, others are doing so to shift their business […]

Untapped Potential: Export credit agencies, an insufficiently accessed source of funds

April 1, 2017

Globally, export credit agencies (ECAs) have played an integral role in financing infrastructure projects. In India, however, funding through this route has been less explored and not as resorted to by infrastructure developers, who have […]

InvIT Interest: Instrument begins to find favour among developers

March 4, 2017

The infrastructure sector has traditionally relied on bank credit to meet its funding requirements. However, constrained bank lending to the sector has necessitated the development of alternative investment vehicles. Taking cognisance of this fact, the […]

FPI Pullout: Foreign fund inflow into infrastructure turns negative

February 8, 2017

India is among the most preferred investment destinations within Asia due to its high growth potential. So far, foreign portfolio investor (FPI)/ foreign institutional investor (FII) participation has been consistent over the years. However, according […]

Gaining Traction: With stymied bank credit, bonds become more popular

January 13, 2017

Banks have been the primary financiers of the infrastructure sector in the country, supported by the equity market. The domestic debt market is dominated by government securities with the penetration of corporate bonds at a […]

Increasing Momentum: Key initiatives and recent developments

December 3, 2016

In the past year, there have been significant developments in Gujarat’s port sector, with steps being taken to revise the existing policies. The period was also marked by the award and completion of key capacity […]

Key Statistics: Bank credit and lending rate for infrastructure

December 3, 2016

Key Statistics: Foreign financing for infrastructure

December 3, 2016

Insuring Infrastructure: Limited options for tailor-made coverage

December 3, 2016

Insurance coverage for infrastructure projects is limited. The infrastructure insurance segment accounts for only 7 per cent of the total general insurance pie, a paltry proportion compared to the value and size of projects involved. […]

Small Steps: Recent developments with regard to emerging funding sources

December 3, 2016

To meet the financing requirement of the infrastructure sector, the development of alternative funding sources has assumed greater importance in recent months. This is because banks, the traditional source of funds, have limited latitude for […]

Encouraging Prospects: PE deal activity in the infrastructure space continues

December 3, 2016

Equity financing typically meets about a fourth of the cost of an infrastructure project. It primarily comes through project promoters or private equity (PE) investors. Though equity does not form a very large part of […]

Slump in Activity: Dip in capital issues due to tepid investor response

December 3, 2016

The initial public offering (IPO) market for the economy as a whole has showed signs of revival since 2015-16. The current fiscal year (till November 2016) recorded the highest issuances since 2010-11. However, a similar […]

Sluggish Growth: Greater participation from NBFCs required

December 3, 2016

The new capital adequacy requirements set under Basel III and the deterioration in asset quality of banks (mostly in infrastructure) has required the government to encourage credit institutions to play a bigger role that can […]