NEW DELHI (Metro Rail News): The Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) has successfully raised $100 million in funding through an external commercial borrowing (ECB) loan from Japan’s MUFG Bank Ltd.
This achievement was made possible with the support of a credit enhancement guarantee provided by the Multilateral Investment Guarantee Agency (MIGA), a prominent member of the World Bank Group.
MUFG Bank’s GIFT branch played a pivotal role in facilitating this groundbreaking transaction, which stands as a remarkable milestone for DFCCIL. This event not only marks DFCCIL’s inaugural commercial financing but also represents the first-ever MIGA-covered transaction in India, making it a significant development in the country’s financial landscape.
DFCCIL holds the responsibility of constructing and managing dedicated freight railway corridors spanning across the nation. This strategic initiative aims to alleviate congestion within existing transportation networks and promote the establishment of a more efficient, reliable, and sustainable transport infrastructure system.
Shashank Joshi, Deputy CEO of MUFG India, expressed that the financing structure established through this collaboration could serve as a model for alternative financing solutions, thus playing a vital role in propelling India’s ambitious infrastructure development efforts forward.
Multilateral Investment Guarantee Agency (MIGA), a key component of the World Bank, specializes in providing political risk insurance and credit enhancement solutions for various projects. The loan acquired through this arrangement holds the potential to open up new avenues for funding large-scale infrastructure projects and other business ventures within the country, as stated by Hira Ballabh, Director of Finance at DFCCIL.
