Takeout financing is a mechanism through which banks can take care of asset liability mismatches (ALM) occurring in funding the long gestation infrastructure projects by transferring loans to the books of a third entity.
Under the agreement, IIFCL and LIC will take 20 per cent each of a project cost, and IDFC the remaining 10 per cent.
(Published 18 September 2011, 16:18 IST)
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