The State Bank of India (SBI) and National Investment and Infrastructure Fund (NIIF) on Monday signed a memorandum of understanding (MoU) to boost availability of capital for infrastructure projects.
The scope of the MoU includes equity investments, investments, project funding, bond financing, renewable energy support and take-out finance for operating assets while its objective is to aid in filling the gap at a time when the availability of equity and debt financing for infrastructure has moderated, the SBI said in a release.
The initiative will help the SBI and NIIF to review opportunities to unlock capital from operational projects, thereby creating room for fresh lending, and addressing asset-liability mismatches, the release added.
“Today on auspicious occasion of 64th Bank’s Day, SBI and NIIF have joined hands to provide a suite of financing solutions to Infrastructure sector. The initiative will address concerns relating to availability of equity and long term debt funding options to large scale projects thereby stimulating infrastructure development," Rajnish Kumar, chairman, SBI said.