Q. Consider the following Statements regarding ‘Take-Out Financing’: - It is for infrastructure projects which have long gestation period
- It helps to prevent any possible asset-liability mismatch
Which of the above Statement(s) is/are correct?
Answer:
Both 1 and 2
Notes: Take-Out Financing is indeed used for infrastructure projects with long gestation periods as it allows for the project to develop over time without immediate financial pressure. It also helps to prevent any possible asset-liability mismatch by ensuring that the finances match up with the project development and timeline.