In 2016 IL&FS Transportation (ITNL) secured a USD 50mn loan from Export Development Canada (EDC) under the Rupee ECB facility, towards refinancing debt and general corporate purposes. With a view to enhance the co-operation between IL&FS Group and Canada, in the infrastructure sector, IL&FS had entered into a Memorandum of Understanding with EDC in September 2015.
Innovations and Impact
- IL&FS Financial Services became the first Indian company to raise money through a Masala Loan — a rupee-denominated loan from overseas investors.
- By borrowing in local currency IL&FS Financial Services minimises the risk of currency fluctuation as hedging costs are borne by the lender.
- This was the first landmark deal between EDC and the IL&FS Group.