Einstitute.worldbank.org Debt Financing Support to Public-Private Partnerships in India Policy and Instruments August 26, 2014 | 9:00 AM EDT Discussion:

Slides:

Advertisements

Similar presentations

Financing Essentials for Public-Private Partnerships United Nations SU/SSC Training Course September 19, 2006.

Advertisements

INTERNATIONAL FINANCIAL CONSULTING EGTT Workshop, September 27-29, 2004 Montreal, Canada Are Export Credit Agencies and Other Traditional Sources of Infrastructure.

WHY STUDY FINANCIAL MARKETS AND INSTITUTIONS?

Chapter 14 Understanding Financial Contracts. 2 Introduction Chapter focuses on financial contracts between lenders and borrowers Chapter focuses on financial.

Capital Markets and Resource Mobilization

What is the ADF Partial Risk Guarantee? Partial Risk Guarantees (PRGs), also known as political risk guarantees, cover private lenders and investors against.

Washington DC December 8, 2008 WBG Post-Crisis Response For Public-Private Infrastructure Projects Jyoti Shukla Program Manager Public Private Infrastructure.

Part One Introduction.

Investing in Employment and Entrepreneurship

1 Kellogg India Business Conference 1 Mumbai as an Int’l Financial Center: Aspects of the Indian Economy India Visit 2013 George Mason University January.

PRINCIPLES OF BANKING Sample Questions and Answers

FINANCING PROGRAMS OF THE EXPORT-IMPORT BANK OF THE UNITED STATES.

Opportunities for Corporate Finance in Latin American Capital Markets John C. Edmunds Professor of Finance Financial Columnist, América Economía March.

1 Historic Challenges and Opportunities for Developing Asian Bond Market Shanghai, China November 2005 ZHU Guangyao Director-General International Department.

Building on the Foundation – The Future of Public-Private Partnerships in India A Discussion with Dr. Arvind Mayaram, Secretary, Government of India Moderated.

CHAPTER 8 A framework for interpretation

1 USAID Credit Guarantees Effective Catalysts for Private Investment in Municipal Finance.

Viability Gap Funding By Ashok Chawla Additional Secretary Department of Economic Affairs, Government of India 20 th December, th December, 2006.

ROLE OF DIFFERENT STAKEHOLDERS AND HYBRID FINANCIAL MECHANISM OF MHI Public Private Partnerships or PPPs as Means of Financing Infrastructure in MHI Projects.

1 An Asian Investment Fund: What it will do and Why needed? Yung Chul Park Research Professor And Director Center for International Commerce and Finance.

PROJECT FINANCING Emerging Trends ENERGY CFO’S SUMMIT 14 TH DECEMBER 2012 LALIT INTERCONTINENTAL, MUMBAI STRICTLY PRIVATE – NOT FOR CIRCULATION Deepto.

ASEAN+3 Seminar on Developing Corporate Bond Markets in Asia Mr. Masato Miyachi, Senior Advisor Office of Regional Economic Integration Asian Development.

Financing Urban Public Infrastructure

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Steven P Janes Sherrards Solicitors London UK CASE STUDIES:

Session 8. The volatility of private capital flows in developing countries and the potential role of BRICS development bank to counter pro-cyclicality.

© 2005 by Center for Energy Economics, Bureau of Economic Geology, The University of Texas at Austin. All rights reserved. 1 Energy Finance Considerations.

FINANCING OF INFRASTRUCTURE- CHALLENGES & OPPORTUNITIES S K Goel Chairman & Managing Director India Infrastructure Finance Company Ltd New Delhi.

Current experiences, opportunities and innovations of municipal financing in Ho Chi Minh City, Vietnam Presentation to International Conference on Financing.

HOTEL INDUSTRY RUSSIA 2010 FINANCING REFINANCING A. Bourdin 2/12/10.

Private Sector Operations The AfDB as a Development and Business Partner July 20, 2011.

Key Performance Measures Funds from Operations ($000s) Debt / Gross Asset Value Secured Debt / Gross Asset Value Interest Coverage Portfolio Summary: "A"

- 1 - The Role of IFIs in CEE Securitisations The EBRD Perspective Tõnu Pekk Senior Banker, Non-Bank Financial Institutions & Structured Finance.

Financing transport infrastructures in Europe Roma,

Fifth Astana Economic Forum Dr. Anand Chiplunkar Director, CWUW Central and West Asia Department 22 May 2012.

© 2012 Cengage Learning. Residential Mortgage Lending: Principles and Practices, 6e Chapter 3 Role of Residential Mortgage Lending in the Economy.

INFRASTRUCTURE FINANCING. What is Infrastructure? “Infrastructure is define as the physical framework of facilities through which goods and services are.

1 Chapter 2 Flow and Sources of Real Estate Funds.

Copyright © 2009 Pearson Prentice Hall. All rights reserved. 1-1 FIN 444 Financial Institutions in Hong Kong Week 1 Introduction: Financial System and.

Part One Introduction. Chapter 1 Why Study Financial Markets and Institutions?

World Economic Forum Financing for Development Workshop Current Risks in the Global Economic System, and The Role of Risk Management Tools Daniel Wagner.

IDB: Financing with the Private Sector Coverage:  Project Finance  Corporate Finance  Capital Markets  Trade Finance Presence in the Market:  Operations.

Dr Marek Porzycki Chair for Economic Policy.  Markets in which funds are chanelled from savers/investors (people who have available funds but no productive.

Infrastructure finance Breaking the deadlock Infrastructure finance Breaking the deadlock.

The European Investment Bank EU’s policy driven Bank

1 Chapter 12 Budget Balance and Government Debt. 2 Budget Terms A Budget Surplus exists when Tax Revenues are greater than expenditures and is the difference.

Public Private Partnerships (PPPs) and The World Bank

Service delivery in the energy sector: Increasing private sector investment in generation & access PPPs in energy sector in Africa: Best practices and.

LONG TERM FINANCE: SHARES, DEBENTURES AND TERM LOANS CHAPTER 20.

National Planning Department. Mobilizing private investment for low carbon development October 14 th, 2015.

FINANCING SOURCES FOR LESSORS Access To Credit Initiative Kiev, February 21, 2006 Presented by: Richard Caproni Sponsored by USAID Access to Credit Initiative.

European Commission Regional Policy Report from Workshop 3: Infrastructure and Public-Private Partnerships 1.Why talk of PPPs? make projects affordable.

Track 4 Building Sustainability: Partnerships and Finance Global Environment Facility – International Waters Second Biennial Conference September 25-29,

IFC AT A GLANCE FINANCE OPPORTUNITIES FOR THE PRIVATE SECTOR.

Trends & Outlook in ECBs D. R. Dogra CARE RATINGS.

Sample Questions and Answers Multiple Choice. Question 1 Which of the following instruments is used by public to directly lend to the Government? (a)

The IDB Group Instruments and Services for Non-Sovereign Clients Private Sector Coordination Office January 2007.

Mortgage Finance Opportunities and Challenges By Taimur Afzal, Chairman ASSOCIATION OF MORTGAGE BANKERS (AMB) March 25th

Development Banks– Term Lending Financial Institutions Focus To provide credit for development of industry To develop backward regions, small, medium and.

Powerpoint Templates Page 1 Powerpoint Templates Alternative Investment Fund (AIF)

FINANCIAL MARKETS TYPES

GAVIN MUNRO, MANAGING DIRECTOR

FIN 324 Financial Institutions in Hong Kong and Global Banking

Dr Marek Porzycki Chair for Economic Policy

Chapter 2 Learning Objectives

Challenges in Financing Renewable Energy

Chapter 1 FINANCIAL SERVICES

Lecture 2 Chapter 2 Outline The Financing Decision

He World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF). The president of the World Bank is, traditionally,

Energy Financing Challenge

Presentation transcript:

einstitute.worldbank.org 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

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

3 GOVERNMENT SUPPORT MECHANISMS FOR PPPs IN INDIA Support InstrumentDescription Bankability of Concession Framework Non-recourse financing; termination payments; mitigation of risks; revenue shortfall loans GrantVGF Guaranteed offtake Offtake guaranteed in the power sector, guaranteed tonnage in grain storage projects LandNominal lease amount; commercial exploitation DebtIIFCL OthersInfrastructure Debt Funds

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

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 ProductNo. of ProjectsAmount Rs. crAmount US $ m Direct lending29954,1489,000

Extended Team 6 CHALLENGES IN DEBT FINANCING  Tenure of loans confined to 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 , 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

INFRASTRUCTURE DEBT FUNDS 8 o Policy: RBI and SEBI in 2011 o Objective: Sourcing long term debt for infrastructure projects o Potential investors: Pension/Insurance Funds and others o Institutional set-up: NBFC or Mutual Fund o Status: 5 IDFs formed so far Further resources on IDFs:

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

einstitute.worldbank.org Questions?? 10