NIFRA offers a variety of loan products that aims to cater to the financial requirement of projects across various infrastructure domains. Presently, NIFRA issues long-term loans for developing projects across various infrastructure sector (as per NRB directives) with a repayment tenure of 5-15+ years. NIFRA extends long-term loans at market-competitive interest rate.

Further, NIFRA provides fund based and non-fund based short term credit facilities to the projects banking with it. Under fund-based credit facilities, the bank provides working capital loans, short term loans, bridge gap loan, demand loan, contractor loan, auto/ equipment loan etc. to infrastructure projects. While non-fund-based facilities include Bid Bond, Performance Bond, advance payment guarantee, financial guarantee, counter guarantee, letter of credit (import and export), etc.

NIFRA has well formulated “Policy for Investment in Shares, Debt & Hybrid Instrument of Infrastructure Projects” and works for establishment, expansion and smooth operation of projects that generate beneficial social or environmental impacts in addition to financial gains. Being pioneer infrastructure development bank of the country NIFRA is playing active role in development of various innovative models of infrastructure project development as an equity and/or quasi equity investor in addition to the debt financing. To create more such impact investing activities with the limited resources, NIFRA invests equity in projects with exit strategy after its successful execution/ implementation.

NIFRA will not prefer to become the largest/single shareholder of any potential entity in which it invests by limiting its investment to not more than 20% of total equity of the said entity.

Sourcing through innovative structures of Debt instruments/Funds onshore and offshore are major activities which NIFRA has initiated. Few of the activities initiated include:

• Issuance of Offshore bond (100% credit guaranteed masala bond denominated in synthetic Indian Rupees “INR” to be listed in London Stock Exchange).
• Issuance of Infra Bond

NIFRA offers Subha Purbhadhar Khata at the market competetive interest rate. The salient fetaures of this product are:

• Minimum Amount NPR 10 Million for Individuals and NPR 50 Million for Institutions.
• Tenure - Minimum 5 Years

NIFRA is in the process of establishing an ‘INFRA Excellence Center’ membered by its own internal specialized team collaborating with the empaneled outsourced team of experts in the relative infra-domain having proven competency in PPP/PSP financial modelling.

The center shall act as Nodal Agency within NIFRA to establish a strong relationship with relevant Government institutions in the country. The team shall liaise with these institutions in activities such as:

PPP Advisory – includes development of PPP model/structure, standard bidding documents, etc.

Transaction Advisory – includes Sale and Purchase Agreement Advisory, Feasibility Studies, Detail Project Design, Techno-Economic Viability Study, Due Diligence and other studies.