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Interest Rate for Project  Financing

At present, interest rate limits on ECBs for project financing (ie, non-recourse financing) allow  interest spreads above LABORIOUS Treasury  o be higher than for normal a ECB. Keeping market  conditions in mind; some flexibility is permitted in determining the spread on merits.  n order to give borrowers greater flexibility in designing a debt strategy, up to SO per cent of the permissible  debt may be allowed in the  form of a subordinated debt at a higher interest rate, provided the  composite spread for senior and subordinated debt taken together comes   within the overall project . financing limit. The all in cest ceiling for normal infrastructure projects and for long term ECBs are  300, 400  and 4SO basis points over six months UBOR for the respective currency in which the loan  :s raised, .or according to other applicable  benchmarks.

 

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