1 / 10

Discussion: Shyamala Shukla , Senior Consultant, PPP Group, The World Bank

Debt Financing Support to Public-Private Partnerships in India Policy and Instruments August 26, 2014 | 9 :00 AM EDT. Discussion: Shyamala Shukla , Senior Consultant, PPP Group, The World Bank Gajendra Haldea , Former Principal Advisor, Infrastructure & PPP, Planning Commission of India.

summer-dean
Télécharger la présentation

Discussion: Shyamala Shukla , Senior Consultant, PPP Group, The World Bank

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Debt Financing Support to Public-Private Partnerships in India Policy and InstrumentsAugust 26, 2014 | 9:00 AM EDT Discussion: Shyamala Shukla, Senior Consultant, PPP Group, The World Bank Gajendra Haldea, Former Principal Advisor, Infrastructure & PPP, Planning Commission of India

  2. APPROACH AND CONTENTS OF WEBINAR • PART I ( 30 minutes) • Government support to PPPs in India • Debt financing requirements • Introduction to the IIFCL • Challenges in debt financing • Outline of key questions on the above • Answers to key questions • PART II (10 minutes) • Introduction to IDF and discussion • PART III (20 minutes) • Q&A and concluding remarks

  3. GOVERNMENT SUPPORT MECHANISMS FOR PPPs IN INDIA

  4. FINANCING REQUIREMENTS FOR INFRASTRUCTURE IN INDIA • Resource requirements for infrastructure: US 600 billion for 2012-2017 • Public and Private share: 50:50 at US $ 300 billion each • Private sector debt requirement: more than US $ 300 billion in five years Investment in Infrastructure Source: Second Report of the High Level Committee on Financing Infrastructure, Planning Commission, Government of India Source: Planning Commission, Government of India, in Deloitte (2012), Indian Infrastructure – A Trillion Dollar Opportunity

  5. INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED • IIFCL was formed in 2006 for long-term debt financing of infrastructure PPPs • IIFCL products: • Direct lending • Subordinated Debt • Cumulative performance: • Other activities: • IIFC (UK) Limited

  6. Extended Team • CHALLENGES IN DEBT FINANCING • Tenure of loans confined to 10-15 years • Sources of funds concentrated in state owned banks • Slow down in growth of commercial bank credit • Bank sector exposure limits • Company exposure limits • Bond financing –fewer issues, capital markets lack depth/volumes • Foreign currency borrowing – currency risk • Lack of affordable hedging mechanisms • Limits to refinancing through ECB Source: Economic Survey of India 2013-14, Chapter 11, p.209

  7. QUESTIONS OF FOCUS • Debt financing - key features of India’s concession framework • Bankability of concession framework • Indian infrastructure market - the shortfall in debt financing • Key features of India’s concession framework - does it provide comfort to lenders? • Role of IIFCL in debt financing • IIFCL’s role in debt financing • Impact during the last few years • Capital adequacy issues • Sector / company exposure issues • Direction of its debt financing portfolio

  8. INFRASTRUCTURE DEBT FUNDS • Policy: RBI and SEBI in 2011 • Objective: Sourcing long term debt for infrastructure projects • Potential investors: Pension/Insurance Funds and others • Institutional set-up: NBFC or Mutual Fund • Status: 5 IDFs formed so far • Further resources on IDFs: • http://rbi.org.in/scripts/NotificationUser.aspx?Id=6830&Mode=0 • http://www.sebi.gov.in/cms/sebi_data/boardmeeting/1360917875498-a.pdf

  9. INFRASTRUCTURE DEBT FUNDS • Role of IDFs • Status of IDFs that have started working • Early results

  10. Questions??

More Related