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    Question

    Which of the following correctly states the maximum

    total exposure of IIFCL under Takeout Financing (including direct lending)?
    A 20% of Total Project Cost Correct Answer Incorrect Answer
    B 25% of Total Project Cost Correct Answer Incorrect Answer
    C 30% of Total Project Cost Correct Answer Incorrect Answer
    D 40% of Total Project Cost Correct Answer Incorrect Answer
    E 51% of Total Project Cost Correct Answer Incorrect Answer

    Solution

    Explanation:
    Under Modified Takeout Finance , IIFCL’s total exposure (direct lending + takeout) is capped at 30% of the Total Project Cost .
    This ensures diversification of risk and encourages participation of multiple lenders.

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