LIC, IDFC will partner state-run IIFCL to offer take-out financing

MUMBAI: LIC and IDFC will partner state-run IIFCL to offer take-out financing, which will boost lending by banks to infrastructure projects, finance minister Pranab Mukherjee said on Saturday.

The agreement for take-out financing — a commitment to provide permanent financing after construction of a project — signed by the three firms envisages IIFCL and LIC buying out 20% of the debt component in a single infrastructure project while IDFC will buy out 10%.