Bank of Baroda has signed an agreement on infrastructure financing with India Infrastructure Finance Company Limited (IIFCL), as per PTI reports.

The agreement provides for joint loans and debt syndication arrangements for infrastructure projects across India. The announcement was made through an official statement on Wednesday.

Nature of the arrangement

This partnership allows both institutions to jointly finance infrastructure projects or participate in syndicated loans together.

These types of arrangements are typically used for projects that require large capital and have a longer repayment period. By sharing the risk, lenders plan to support projects that may be difficult to finance through a single balance sheet.

Project Coverage

The Agreement applies to a wide range of infrastructure projects and is not limited to any particular area. The projects will be evaluated across India, covering both urban and rural areas.

Financing decisions will be subject to standard due diligence, credit evaluation procedures, and internal approvals of the relevant institutions.

IIFCL's Debt Focused

IIFCL stated that this collaboration aligns with its ongoing role in providing long-term infrastructure finance.

Palash Srivastava, Deputy Managing Director of IIFCL, stated that the institute continues to support national priorities through financing linked to green infrastructure, micro, small, and medium enterprises, and rural infrastructure. These sectors have been part of IIFCL's lending activities recently.

Role of Bank of Baroda

Bank of Baroda said the agreement will be supported by its nationwide branch network and lending operations. Lalit Tyagi, Executive Director of the Bank, said that this collaboration will help in expanding financing for infrastructure projects in various sectors. The bank is expected to evaluate and finance eligible projects in collaboration with IIFCL.