State Bank of India and the National Investment and Infrastructure Fund (NIIF) on Monday signed a memorandum of understanding (MoU) to boost availability of capital for infrastructure projects. The scope of the MoU includes equity investments, project funding, bond financing, renewable energy support and take-out finance for operating assets.
“The objective of this initiative is to aid in filling the gap at a time when the availability of equity and debt financing for infrastructure has moderated,” said Rajnish Kumar, chairman, SBI.
Sujoy Bose, managing director and CEO, NIIF said, “The availability of post-construction take-out equity and debt financing for developers and builders of infrastructure projects will play an important role in the infrastructure development cycle in India. NIIF’s partnership with SBI will allow us to design large-scale long-term financing solutions to address this need.”
In the last financial year, SBI — through its specialised Project Finance & Structuring Business Unit — extended financial assistance of about Rs 51,000 crore to 47 infrastructure projects. For the current financial year, the bank has a robust pipeline.