Infra Debt Funds
Infra debt fund NBFCs must have net owned fund of at least Rs 300 cr: RBI
Infrastructure Debt Fund-NBFCs (IDF-NBFCs) will now be required to have a net owned fund (NOF) of at least Rs 300 crore, said the Reserve Bank's revised norms for such entities issued on Friday. Besides, they should have a capital-to-risk weighted assets ratio (CRAR) of minimum 15 per cent (with minimum Tier 1 capital of 10 per cent). RBI said a review of the guidelines applicable to IDF-NBFCs has been undertaken in order to enable them play a greater role in financing of the infrastructure sector and to harmonise the regulations governing financing of infrastructure sector by NBFCs. The review has been undertaken in consultation with Government of India. An IDF-NBFC is a company registered as NBFC to facilitate the flow of long- term debt into infrastructure projects. It raises resources through issue of rupee or dollar-denominated bonds of minimum 5-year maturity. Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs. "IDF-NBFC shall raise funds through issue of eith
 "Infra debt fund NBFCs must have net owned fund of at least Rs 300 cr: RBI")
RBI allows infra debt funds to raise money via foreign loan route
IDF-NBFCs were earlier allowed to raise funds through rupee or dollar-denominated bonds of minimum five-year maturity, to the extent of up to 10 per cent of their total outstanding borrowings
 "RBI allows infra debt funds to raise money via foreign loan route")
IDFs not able to make impact due to lack of good projects: Report
IDFs are investment vehicles for facilitating flow of long-term debt to infrastructure sector
 "IDFs not able to make impact due to lack of good projects: Report")
