DFCCIL Receives $100 Million Capital from Japan's MUFG, As ECB Loan
The Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) has received a $100 million external commercial borrowing (ECB) loan from Japan's MUFG Bank Ltd, according to an email statement from the bank.
The loan is backed by a credit enhancement guarantee from the Multilateral Investment Guarantee Agency (MIGA), a World Bank Group member. "This landmark transaction, to be facilitated through MUFG Bank's GIFT branch, will mark the first-ever commercial financing for DFCCIL as well as the debut MIGA-covered transaction in India," MUFG said in a statement.
The Government of India-controlled DFCCIL is dedicated to building and managing freight railway corridors across the country, decongesting existing transportation networks and promoting more efficient, reliable, and sustainable transportation infrastructure.
This financing structure, according to Shashank Joshi, deputy CEO of MUFG India, will serve as a model for alternative financing solutions capable of propelling India's accelerated infrastructure development.
The MIGA of the World Bank provides political risk insurance and credit enhancement solutions for projects.
"This loan has the potential to create a new avenue for funding large-scale infrastructure projects and other enterprises in the country," said Hira Ballabh, DFCCIL's director finance.