Infrastructure Finance

Kaizen is proud to be associated with the continued thrust of Government Policies in creating world class infrastructure assets by helping diverse infrastructure project developers to have access to funds required for execution of these projects. Ours has been a story of delivery excellence of innovative funding options, diverse in nature, serving the entire infrastructure sector be it Power, Telecommunication, Ports/ Roads/ Bridges, Railways, Warehousing, Irrigation and Urban Infrastructure Development

Of the numerous funding options for Infra Sector, the important ones are :

• Working Capital Finance: Large quantum of Non-funded Working Capital Limits in the form of Bid Bond Guarantees, Mobilization Advance /Advance Payment Guarantees, Performance Guarantees are required along with Letter of Credit Facility (Domestic/Import)( Sight/DA ) for procurement of Raw Material /Stores & Spares by Infra sector. Fund Based Working Capital limits, though normally required in small amounts, are also arranged.

• Equipment Financing: Term Loan requirements for Capex mainly for procurement of Construction Equipments are arranged from Banks/ NBFs on very lucrative terms justifying the trust reposed by the Project developers in us.

• BOT Funding : Each of such funding is uniquely structured to suit the specific requirements based on Annuity/Toll Collection from the project .Such funding by securitisation of future cash flows may extent upto a period of 15 years based upon the projected cash flow.

• SPV Level funding: Special Purpose Vehicle (SPV) Funding is gaining popularity amongst Infra Projects Developers as the comfort to the Lender is more on the quantum and quality of the projected cash flow.

• Funding for large Power Projects:- We syndicate funds from a group of lenders for large Hydro and Thermal Power projects. Such funding normally extends for a period up to 10-15 years, based upon the projected cash flows.

• Funding for New & Renewable Energy:- In line with the initiatives and trust of the Government in all matters relating to New & Renewable Energy which is Green, Clean and Sustainable, for supplementing the energy requirement of the country, we assist our clients to establish Biomass Power, Wind Power and Small Hydro Power Projects.

• Take-out financing arrangement through ECB:- As per the extant norms, refinancing of domestic Rupee loans with ECB is not permitted. However, keeping in view the special funding needs of the infrastructure sector, RBI has permitted take-out financing arrangement through ECB, under the approval route, for refinancing of Rupee loans availed from the domestic banks by eligible borrowers in the sea port, airport, and roads including bridges and power sectors for the development of new projects, subject to certain conditions as stipulated by RBI in their ECB Policy.