Question
The World Bank approved a USD 225 million loan for the
Rajasthan Highway Modernization Project. What is unique about this loan's repayment structure?Solution
The USD 225 million loan from IBRD includes India's first Step-Up Loan (SuL) mechanism. The SuL eases fiscal pressure during the early high-risk phase, with higher repayments later once the project stabilises and becomes ready for market refinancing. The loan has a 35-year maturity with a 5-year grace period.
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