2025-05-05 08:31:31
Latest Post
AZAD Engineering Ltd signs long term supply agreement with GE Steam Power GMBH
Odyssey Technologies Ltd recommends final dividend of Rs. 1
Ceinsys Tech Ltd recommends final dividend of Rs. 3.50
Netweb Technologies India Limited recommends dividend of Rs. 2.50
D-Link India Ltd recommends final dividend of Rs. 15
Industry News
IFC Helps Mizuho Corporate Bank Mobilize Financing for Transmission Project in India
Posted On : 2010-07-10 01:59:23( TIMEZONE : IST )
New Delhi - IFC, a member of the World Bank Group, is helping Mizuho Corporate Bank finance a power transmission line project that operates transmission links between East and Northeast India and power-deficit North India.
IFC's long-term maturity currency swap will enable Mizuho Corporate Bank's participation in the project without any need to fund in local currency, addressing one of the issues for foreign banks looking to fund infrastructure projects in the country.
"IFC's innovative structure, the first of its kind to be executed globally, allows a bank to invest U.S. dollars to participate in a local currency loan. This will enable Mizuho Corporate Bank to invest in Indian infrastructure projects," said Takeshi Kurita, General Manager, Global Structured Finance Division, Mizuho Corporate Bank. "We are keen to do more through creative financial structures that address the needs of projects and meet the requirements of international lenders."
Participation from many more international commercial banks through similar novel financial structuring mechanisms can help meet India's rising project financing needs to address the country's tremendous infrastructure gaps.
Paolo M. Martelli, IFC Director for South Asia, said, "India, its infrastructure, and especially its energy requirements are a priority for IFC. To meet India's needs for project financing in the sector, our strategic focus has been one of evolving innovative frameworks to support private sector participation in generation, transmission, distribution, renewable energy, and rural electrification."
IFC provided a 15-year loan in 2004 to Powerlinks Transmission Limited, a joint venture between Tata Power Company Limited and Power Grid Corporation of India, for their project connecting Tala Hydro power project in Bhutan with the grid in India. This was the first public-private partnership transmission line project in South Asia.
Operating since September 2006, electricity generated by Tala hydroelectric power plant in Bhutan is transmitted to power-starved parts of North India. The project facilitates improved evacuation of hydropower from Bhutan contributing to its economy in addition to reducing power shortages in North India.
