India is proposing to create a new entity for financing infrastructureNSE 3.61 % that will seek to bolster lower-rated bonds issued by companies in the sector.
The National Housing Bank (NHB), National Bank for Agriculture and Rural Development (Nabard) and India Infrastructure Finance Company Ltd will be roped in as investors for the proposed entity National Infrastructure Credit Enhancement Ltd or NICE.
” We have had some discussions regarding these two institutions picking up 5-10% stake in the proposed non-banking financial company (NBFC),” a finance ministry official told ET. IIFCL will hold 22.5% stake in the entity.
