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August 5, 2024

GuarantCo collaborates with India Infrastructure Finance Company Limited to accelerate sustainable infrastructure investments in India

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GuarantCo, part of the Private Infrastructure Development Group (PIDG), and India Infrastructure Finance Company Limited (IIFCL), a Government of India owned enterprise specialising in financing infrastructure sector, have signed a Memorandum of Understanding (MoU) to explore areas of mutual cooperation primarily focused on enabling funding to the growth of e-mobility, agricultural infrastructure and other sustainable infrastructure sectors in India.

The MoU outlines the beginning of a long-term partnership between IIFCL and GuarantCo, with both parties seeking to leverage their respective strengths to support and finance infrastructure projects. The collaboration aims to explore various opportunities including portfolio guarantees, co-guarantees and partial guarantees for transactions funded by IIFCL.

GuarantCo, established in 2005, has been operating in India since 2008 and has since provided eleven financing solutions in the country totaling USD 362 million INR equivalent including the USD 200 million framework guarantee with Axis Bank in 2021 allowing mobilisation of funds between USD 300 and 400 million in local currency to finance the e-mobility ecosystem in India. This guarantee-backed debt funding, a first of its kind initiative in India, has subsequently led to successful closure of two transactions for Vivriti Capital and Everest Fleet with many others in the pipeline.

Layth Al-Falaki, CEO of GuarantCo, said:We are proud to have signed this Memorandum of Understanding with IIFCL, which will focus on exploring progressive sustainable financing, in line with PIDG’s and GuarantCo’s strategic plans. GuarantCo has been operating in India for sixteen years and has built very strong local partnerships over this period of time. The collaboration with IIFCL adds to our momentum in the country to the advantage of local people who will benefit from improved sustainable infrastructure.”
Dr. P.R. Jaishankar, Managing Director, IIFCL, said:With the signing of this MoU, IIFCL will be taking one more step ahead towards the growth of infrastructure sector. The collaboration between IIFCL and GuarantCo is aimed at exploring the areas of mutual interest, primarily focussed on enabling funding to the E-mobility, agricultural infrastructure and other sustainable infrastructure sectors in India. IIFCL has been playing a pivotal role in the infrastructure landscape of India since last eighteen years and will continue to embark on the journey of infrastructure growth”.

 

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In the picture: Nishant Kumar, Managing Director Asia at GuarantCo and Subhasis Dahl, General Manager at IIFCL

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