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Anil Bhandari

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IFC loan financing<br />

Description:<br />

A-loans (IFC(<br />

IFC’s own account)<br />

• fixed/variable market-rate rate loans to private sector ($ 1m-100m, 100m, in currency of choice)<br />

IFC Loans<br />

• also to intermediary banks as credit-lines for further on-lending and to publicly owned<br />

entities in context of pre-privatization privatization equity<br />

• maturity of 7-127<br />

years, grace period & repayment on case-by<br />

by-case basis (dependent<br />

on borrower’s s cash flow)<br />

• financing capped to 25% of project costs for Greenfield projects; ; for expansion projects, capped<br />

to 50%, provided loan does not exceed 25% of total capitalization n of project company<br />

B-loans (syndicated loans)<br />

• package consisting of IFC A-loan A<br />

& loans from other financiers under one loan agreement<br />

• participants benefit from IFC’s preferred creditor status<br />

• payments distributed pro-rata rata between IFC & participants (i.e. IFC not fully repaid until all<br />

participants fully repaid)

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