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Non-Fund Based Products

Through our non-fund based products, we issue guarantees for a project’s performance and payment obligations. Our guarantees enhance the credit ratings of the underlying financial instruments and enable projects to secure financing from a wider spectrum of sources. These include borrowings from commercial banks, foreign lenders and the debt capital markets. We also issue guarantees to enable project companies to open letters of credit.

Our non-fund based products also consist of Take-out financing. This product is designed to address the maturity mismatches and the risk appetite of certain categories of lenders, allowing them to participate in infrastructure financing. It also helps us to take over outstanding loans from project lenders after 5 years because of our access to funds with long-term maturity.

The amount of debt funding provided by a bank, financial institution or NBFC participating in project funding is constrained by industry, group and borrower limits on exposures that apply to them. To address this constraint we may assume a portion of the credit risk in an underlying instrument through our risk participation product.

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