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.