EDC provides first ever "Masala Loan" to India's IL&FS
JANUARY 2017 - Stikeman Elliott acted for Export Development Canada (EDC) in its US$50M financing, denominated in rupees, to Infrastructure Leasing & Financial Services (IL&FS), a major infrastructure developer based in Mumbai, India. This is the first ever "Masala Loan", an arrangement that allows a 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 at the beginning of 2016.
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. It will generate new opportunities for small- and medium-sized Canadian companies to get new business from IL&FS.