On November 18, 2016, Export Development Canada (“EDC”) provided the rupee equivalent of US$50 million in financing to IL&FS Transportation Networks Limited (“ITNL,” the largest BOT Road Asset owner in India in terms of length of road in its portfolio), a wholly owned subsidiary of Infrastructure Leasing & Financial Services (“IL&FS”), a major infrastructure developer based in Mumbai, India.
This is the first-ever disbursed “Masala Loan” under the new ECB regulatory framework notified by the Reserve Bank of India on November 30, 2015.
These loans allow an eligible financial institution outside India to make an Indian rupee loan to a borrower in India. Masala Loans may now be made thanks to Reserve Bank of India changes introduced with effect from December 2, 2015.
The goal of this landmark financing is to fulfill the needs of Indian companies and to make it easier for Canadian suppliers to do business in India, thus enhancing the Indo-Canadian partnership in various areas of infrastructure development.
The financing generates new opportunities for small- and medium-sized Canadian companies to get new business from IL&FS.
The Masala Loan proceeds will be used for refinancing of existing domestic debt and for general corporate purposes.
Since 2013, IL&FS has procured approximately US$2 million in goods and services from Canadian companies. EDC’s financing aims to increase this amount to more than US$4 million per year.
Stikeman Elliott LLP teamed up with India’s AZB & Partners to assist EDC in its collaboration with The Bank of Nova Scotia, the agent bank. EDC was represented by an in-house team led by Valérie Martin. The Stikeman Elliott legal team was comprised of Érik Richer La Flèche, Sylvia Avedis, François Gilbert and Jeffrey Keey. The AZB & Partners legal team included Gautam Saha and Pallavi Meena.
This is the first-ever disbursed “Masala Loan” under the new ECB regulatory framework notified by the Reserve Bank of India on November 30, 2015.
These loans allow an eligible financial institution outside India to make an Indian rupee loan to a borrower in India. Masala Loans may now be made thanks to Reserve Bank of India changes introduced with effect from December 2, 2015.
The goal of this landmark financing is to fulfill the needs of Indian companies and to make it easier for Canadian suppliers to do business in India, thus enhancing the Indo-Canadian partnership in various areas of infrastructure development.
The financing generates new opportunities for small- and medium-sized Canadian companies to get new business from IL&FS.
The Masala Loan proceeds will be used for refinancing of existing domestic debt and for general corporate purposes.
Since 2013, IL&FS has procured approximately US$2 million in goods and services from Canadian companies. EDC’s financing aims to increase this amount to more than US$4 million per year.
Stikeman Elliott LLP teamed up with India’s AZB & Partners to assist EDC in its collaboration with The Bank of Nova Scotia, the agent bank. EDC was represented by an in-house team led by Valérie Martin. The Stikeman Elliott legal team was comprised of Érik Richer La Flèche, Sylvia Avedis, François Gilbert and Jeffrey Keey. The AZB & Partners legal team included Gautam Saha and Pallavi Meena.
