The study, by Project Finance International (PFI), a source of global project finance intelligence and a Thomson Reuters publication, said the main market for project finance (PF) in 2009 was the domestic Indian market, which raised $30 billion (Rs 1.38 lakh crore), accounting for 21.5 per cent of the global project finance market. This was up from $19 billion in 2008.
Also, for the first time, investment bank SBI Capital Markets, a subsidiary of State Bank of India, topped the global loan chart, ahead of top French, British and US banks. Three French banks followed: Calyon, BNP Paribas and Societe Generale.
“The global project finance market was propped up in 2009 by government-linked projects such as social infrastructure and renewables and by the fact that 20 per cent of the market is in India, which surged to become the biggest and busiest market last year, toppling Australia from the previous year’ top position,” said PFI in its study.
It was not only SBI Capital Markets which was gaining attention in the loan market. Among other domestic loan arrangers, IDBI Bank was ranked second, Infrastructure Development Finance Company (IDFC) was ranked third and Axis Bank fourth in the Asia-Pacific region.
“At IDFC, our focus will be domestic markets only and given the size of opportunities in India, we would still further grow our operations here,” said Vikram Limaye, executive director at IDFC.
Given the credit crunch and the fall of major banks in the West, the global PF figures were not as robust as in the previous couple of years. According to PFI data, globally, the PF loan figure stands at $139.2 billion in 2009 compared to the staggering $250 billion in 2008 and $220 billion in 2007. Adding the figures for project bonds at $8.2 billion, down from $11.9 billion in 2008, the overall PF market volume stood at $147.4 billion. That was a drop of 44 per cent from 2008, but to put it in context, the overall global PF market stood at $114.5 billion in 2004 and at $166 billion in 2005.
SBI arranged 36 deals amounting to $20 billion of debt – 35.2 per cent of the total volume for the Asia-Pacific region. This included some major deals such as financing for the Sasan ultra mega power project, projects of Adani Power and Sterlite Energy, and funds for Vodafone and Unitech in the telecom sector.

The power sector continued to dominate lending and generated a record volume. More than $22.3-billion loans in 53 transactions in the sector were signed globally during the year, accounting for almost 40 per cent of the entire PF market. Also, a major contribution came from social infrastructure development schemes launched by the government recently.
In all, 224 financial institutions were ranked. Only lead arranger mandates are credited for the league table, while participation in syndications is not credited. Also, PFI tables do not include property or real estate sector transactions. In addition, the PF tables do not include corporate loans and those guaranteed by sponsors or governments.

New Delhi: A high-level panel, headed by the Finance Secretary, Mr Ashok Chawla, has cleared four port expansion projects entailing an estimated investment of US$ 890.36 million in three states.

As per an official statement, an approval for the development of mega container terminal at the Chennai Port at an estimated cost of US$ 675.17 million has been granted by the Public Private Partnership Appraisal Committee (PPPAC). The project to develop a multi-purpose berth at the Paradip Port in Orissa to handle clean cargo at an estimated cost of US$ 83.67 million was also cleared by the committee earlier this month.

The development of the second North Cargo Berth at the Tuticorin Port in Tamil Nadu for handling bulk cargo at a cost of US$ 71.76 million also received approval. The fourth project that received clearance is for the development of container terminal at the New Mangalore Port at an estimated cost of US$ 59.6 million.

New Delhi: According to the Gem and Jewellery Export Promotion Council, the exports of gems and jewellery from India, the world’s largest supplier, rose 45 per cent over December 2008 to touch US$ 1.89 billion in December 2009.

Exports during the April-December 2009 increased to US$ 19.6 billion from US$ 19.1 billion a year earlier. Exports of cut and polished diamonds in the April-December 2009 period stood at US$ 12.06 billion as compared to US$ 11.5 billion in the corresponding period last year.

Mumbai: Foreign exchange reserves rose $899 million to touch $285.1 billion during the week ended January 15, largely on account of revaluation of non-dollar assets in reserves.
The latest figures released by the Reserve Bank of India (RBI) on Friday indicate that the total foreign exchange reserves comprising foreign currency assets, gold and special drawing rights (SDR — reserves currency with the International Monetary Fund) rose $853 million reflecting valuation gains in non-dollar assets. The value of SDR and the reserve capital with the IMF rose $36 million and $10 million, respectively, during the week.
“The dollar had strengthened sharply against the euro during the week. As a result, the value of euro-denominated assets in reserves, which are expressed in dollars, have risen,”said a treasury official with a private bank, requesting anonymity. Almost 40% of the reserves are believed to be comprised in non-dollar assets, including the sterling pound, yen, euro and the yuan, though central banks don’t make their currency composition of reserves public.

In other developments, the central government has kept its respective ways and means advances (WMA) account with RBI vacant during the week ended January 8. WMA is a facility under which governments (states as well as the Centre) can borrow from the central bank to meet their daily revenue mismatches. While borrowing within the limit is at the prevailing repo rate, borrowings above the agreed limit — between the government and RBI — is at 2% higher than the repo rate.

State governments availed of Rs 72 crore higher during the week under this facility, taking their outstanding WMA balances to Rs 75 crore as on January 15.

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