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NBCC eyes $100 million savings with in-house funding arm
The Business Guardian
|April 20, 2024
NBCC, a prominent construction and real estate developer, is planning to establish its own non-banking finance company (NBFC) later this year, aiming to reduce borrowing costs for key infrastructure projects. According to sources closely involved in the matter, this strategic move is estimated to save NBCC approximately $108 million in interest costs over the next two years.
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The proposal to set up the NBFC was discussed by NBCC’s board in March, with plans for the final structure of the entity to be decided after June, as per one of the sources. The establishment of a shadow lender by a state-run company like NBCC is unprecedented in India, as the government typically owns infrastructure financial institutions but does not have other state-run companies creating units to finance projects.
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