IIFCL may extend guarantee to bonds by infra SPVs

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.