SBI seeks new financial tools to fund infra sector
25 Nov 2013 10:56 PM GMT
With lenders experiencing stress on their infra loan books, Arundhati Bhattacharya , head of the country's largest lender State Bank of India (SBI), has called for a need to introduce new products to finance long-gestation projects, including refinancing the loans every five years.
'As we move forward, there is a greater need to device new products to fund infrastructure projects. This will be by means of new structures, such as 5x25 route (under which an asset gets refinanced every five years),' the newly-appointed chairperson told a capital markets summit over the weekend.
The event was organised by the ISB in Mumbai. Other options, which should be looked into, include more focus on takeout finance, getting pension funds and insurers who can invest for the long -term but have lower risk appetite, and deepening the corporate bond market, she said.
'As we move forward, there is a greater need to device new products to fund infrastructure projects. This will be by means of new structures, such as 5x25 route (under which an asset gets refinanced every five years),' the newly-appointed chairperson told a capital markets summit over the weekend.
The event was organised by the ISB in Mumbai. Other options, which should be looked into, include more focus on takeout finance, getting pension funds and insurers who can invest for the long -term but have lower risk appetite, and deepening the corporate bond market, she said.
Next Story
