India Infrastructure Finance Company (IIFCL) today said it is exploring the possibility of giving guarantee to bonds issued by special purpose vehicles (SPVs).
"This study is at the initial stage and we would like to know whether by our intervention could improve the ratings of an SPV in a particular project so that it is able to satisfy the requirements of institutional investors in bonds," IIFCL chief general manager R Rajagopalan told reporters here.
IIFCL has tied up with the advisory division of credit rating agency Icra for the purpose.
Since IIFCL is active in the infrastructure space, it would only deal with bonds in that sector, he added.
"We are working with Icra on whether this (guarantee to bonds) can be done and it will take at least 2-3 months to come to a final decision," he said.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app