Debt Financing Support to Public-Private Partnerships in India
Download
1 / 10

Discussion: Shyamala Shukla , Senior Consultant, PPP Group, The World Bank - PowerPoint PPT Presentation


  • 165 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Discussion: Shyamala Shukla , Senior Consultant, PPP Group, The World Bank ' - muhammed-femi


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

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


APPROACH AND CONTENTS OF WEBINAR India

  • 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



  • FINANCING REQUIREMENTS FOR INFRASTRUCTURE IN INDIA 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


INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED India

  • 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


Extended team
Extended Team India

  • 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


Questions of focus
QUESTIONS OF FOCUS India

  • 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


Infrastructure debt funds
INFRASTRUCTURE DEBT FUNDS India

  • 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


Infrastructure debt funds1
INFRASTRUCTURE DEBT FUNDS India

  • Role of IDFs

  • Status of IDFs that have started working

  • Early results



ad