What is the approach taken to set the pricing for

Q: Answer-What is the approach taken to set the pricing for takeout finance in the context of IIFCL's Takeout...

The pricing mechanism for takeout finance under IIFCLs 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.

takeout finance in the context of IIFCL's Takeout Finance Scheme?

A Total residual loan amount Correct Answer Incorrect Answer

B Project's completion status Correct Answer Incorrect Answer

C Credit rating of the infrastructure project Correct Answer Incorrect Answer

D Size of the borrowing entity Correct Answer Incorrect Answer

E Sector of the infrastructure project Correct Answer Incorrect Answer

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.

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Relevant for Exams:

IIFCL Grade A/B

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