What is the approach taken to set the pricing for

Solution

The pricing mechanism for takeout finance under IIFCL's Takeout Finance Scheme is based solely on the credit rating of the infrastructure project and is disclosed upfront. The rate of interest for the loan taken-out by IIFCL on the Scheduled Date of Occurrence of Takeout is subject on the basis of credit risk rating of two reputed rating agencies Post CoD and reflected through the Base Rate plus the risk premium. The scheme follows a transparent, non-discriminatory, and non-discretionary approach.