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Treasury Management L&T Infrastructure Finance Limited UNNATRIX | MDI Gurgaon Anirban Ray  | pg07anirban_r@mdi.ac.in | 9971995412 Neha Goyal  | pg07neha_g@mdi.ac.in | 9911461348 Saurabh Mundra  | pg07saurabh_m@mdi.ac.in | 9811865818 Sumit Thawrani  | pg07sumit_t@mdi.ac.in |9313455285
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Infrastructure Financing in India | Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],Domestic Sources External Sources Equity •  Domestic developers (independently or in collaboration with international developers) •  International developers (independently or in collaboration with domestic developers) •  Public utilities (taking minority holdings) •  Equipment suppliers (in collaboration with domestic or international developers) •  Other institutional investors (likely to be limited) •  Dedicated infrastructure funds •  Other international equity investors •  Multilateral agencies Debt   •  Domestic commercial banks (3–5 year tenor) •  International commercial banks (7–10 year tenor) •  Domestic term lending institutions (7–10 year tenor) •  Export credit agencies (7–10 year tenor) •  Domestic bond markets (7–10 year tenor) •  International bond markets (10–30 year tenor) •  Specialized infrastructure financing institutions •  Multilateral agencies (over 20 year tenor) Source: Planning Commission, Government of India
Constraints in Financing Of Infrastructure Constraints on Infrastructure Financing ,[object Object],[object Object],[object Object],Equity Financing ,[object Object],[object Object],[object Object],[object Object],[object Object],Corporate Debt Market ,[object Object],[object Object],[object Object],Regulatory and institutional problems ,[object Object],[object Object],Mezzanine financing ,[object Object],[object Object],Foreign Exchange Market
Issues with Current Treasury Management Strategy ,[object Object],[object Object],[object Object],[object Object]
Asset Liability Management System | Guidelines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scale Back Infrastructure lending – WHY? ,[object Object],[object Object],[object Object],As on Oct 10, 2008 Less Than 1 Month Over 1 Month upto 2 Months Over 2 Months upto 3 Months Over 3 Months upto 6 months Over 6 months upto 1 year Over 1 year upto 3 years Over 3 years upto 5 Years Over 5 years Assets 3.42% 4.43% 1.55% 12.85% 14.85% 34.03% 14.75% 14.12% Borrowings 6.49% 14.92% 33.72% 23.78% 13.42% 5.19% 2.16% 0.32% Allowed Gap 0.97% 2.24% Current Asset Liability Mismatch 3.07% 10.49% 32.17% 10.93% -1.43% -28.84% -12.59% -13.80%
Scale Back Infrastructure lending – HOW MUCH? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Assumptions | Projected Model ,[object Object],[object Object],[object Object],30% 2010 35% 2011 35% 2012 35% 2013 2009 Infrastructure Loans Growth 25% 25% 75% 2010 25% 75% 2011 25% 75% 2012 2008 2009 2013 Secured Loans 76.19% 75% 75% Unsecured Loans 23.81% 25% 25% 5% 5% 5% 6% 6% Average RoI 10.25% 13% 2010 10% 13% 2011 10% 13% 2012 2009 2013 Average interest on Infrastructure Loans 13% 13% Average Cost of Loan Funds 10.25% 10%
Assumptions | Projected Model ,[object Object],[object Object],[object Object],[object Object],[object Object],5% 10% 5% 2010 10% 10% 10% 2011 10% 10% 10% 2012 Growth in costs 2009 2013 Employee Cost 5% 10% Establishment Expenses 10% 10% Other Expenses 5% 10%
Key Financial Projections ,[object Object],[object Object],36% 3.68 0 30% FY 2010 37% 4.41 0 32% FY 2011 39% 5.28 0 35% FY 2012 FY 2009 FY 2013 Growth in size of Balance Sheet 30% 35% Issue of Equity 0 300 mm Debt/Equity  3.05 3.49 Growth in Loan Funds 37% 25% 32% 32% 33% 32% FY 2011 29% 37% 38% 35% FY 2012 46% 5.28 31% 35% FY 2013 16% 35% 36% 28% FY 2010 Growth in Operating and Other Income Growth in Interest Expense Growth in Total Expenses Growth in Net Income
Maturity Profile Structure | Expected ,[object Object],[object Object],As on Mar 31, 2009 Less Than 1 Month Over 1 Month upto 2 Months Over 2 Months upto 3 Months Over 3 Months upto 6 months Over 6 months upto 1 year Over 1 year upto 3 years Over 3 years upto 5 Years Over 5 years Total Assets 5.00% 6.20% 1.80% 10.00% 14.00% 23.00% 15.00% 25.00% 100.00% Borrowings 5.00% 5.40% 6.96% 15.00% 10.00% 20.00% 8.00% 29.64% 100.00% As on Mar 31, 2010 Less Than 1 Month Over 1 Month upto 2 Months Over 2 Months upto 3 Months Over 3 Months upto 6 months Over 6 months upto 1 year Over 1 year upto 3 years Over 3 years upto 5 Years Over 5 years Total Assets 5.00% 6.20% 1.80% 10.00% 14.00% 23.00% 15.00% 25.00% 100.00% Borrowings 5.00% 5.40% 7.30% 15.00% 10.00% 23.00% 8.00% 26.30% 100.00%
Revisions | Sources of Funds ,[object Object],[object Object],Equity 28.73% Banks 35.64% Mutual Funds 28.51% DFI and Long Term Non-Convertible Debenture 7.13% Equity 24.71% Banks 33.88% Mutual Funds 26.35% DFI and Long Term Non-Convertible Debenture 15.06%
Future Borrowing Strategy | Debt Issue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Future Borrowing Strategy | ECBs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Future Borrowing Strategy | Equity Issue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of Current Global Crisis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of Current Global Crisis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Outlook ,[object Object],[object Object],[object Object],[object Object]
The Way Forward ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you

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Prometheus Unnatrix Mdi Gurgaon

  • 1. Treasury Management L&T Infrastructure Finance Limited UNNATRIX | MDI Gurgaon Anirban Ray | pg07anirban_r@mdi.ac.in | 9971995412 Neha Goyal | pg07neha_g@mdi.ac.in | 9911461348 Saurabh Mundra | pg07saurabh_m@mdi.ac.in | 9811865818 Sumit Thawrani | pg07sumit_t@mdi.ac.in |9313455285
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