Congress Govt looks at TGIIC to raise funds through debt markets

The Advisor cum Merchant Banker would be responsible for structuring and advising on various aspects, including credit enhancement structure, government guarantee, tax implications and others.

Hyderabad: Despite having cried hoarse over the previous BRS government raising loans, the Congress government is now trying secure loans through different corporations and by different means.

One of the latest moves was to get the Telangana Industrial Infrastructure Corporation Limited (TGIIC) float tenders for selection of advisor cum merchant banker to raise funds to the tune of Rs.5000 crore through debt markets.

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The Advisor cum Merchant Banker would be responsible for structuring and advising on various aspects, including credit enhancement structure, government guarantee, tax implications and others.

The Advisor cum Merchant Banker will also be tasked with mobilizing funds through the placement of bonds, targeting a minimum amount of Rs.5000 crore, as per the tender terms. Initially, the contract period will be for 12 months with a minimum commitment of Rs.5,000 crore.

It will be extended further based on the performance of the merchant banker in mobilizing funds by the end of the defined period. This is part of the State government exploring different avenues to raise revenues for implementation of welfare programmes like farm loan waiver.

Among different methods, raising funds through issue of bonds, setting up a corporation and mortgaging lands are also being considered by the officials.

During a meeting last month, Chief Minister A Revanth Reddy had asked officials to explore the possibilities of setting up an exclusive corporation for welfare of farmers and raising funds for the proposed crop loan waiver. eom