Pandemic may bring back plan for a new credit enhancing NBFC
By IANS |
Published on
Tue, Dec 15 2020 19:51 IST |
6 Views
Non-Banking Financial Company (NBFC).. Image Source: IANS News
New Delhi, Dec 15 : The government may give the go-ahead for a new credit enhancement non-banking finance company (NBFC) that will act as a guarantor for lower-rated bonds issued by infrastructure companies to help them raise funds at competitive rates.
A credit enhancement structure or a company helps in lifting the ratings of a specific project or a Special Purpose Vehicle (SPV) executing that project, making it easier for them to mobilise funds from the market at attractive rates.