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Multi-tranche financing facility

  • IASbaba
  • December 12, 2022
  • 0
Economics
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Context: Recently, Asian Development Bank has approved a USD 780 million multi-tranche financing facility (MFF) to build new lines and improve the connectivity of the metro rail system in Chennai with the city’s existing bus and feeder services.

  • This project will expand Chennai’s metro rail system to provide better transport solution to improve urban mobility.

About Multi-tranche financing facility:

  • MFF is a longer-term partnership between Asian Development Bank (ADB) and client country.
  • It provides funds for complex project which would need a longer commitment than a typical ADB investment loan could offer.
  • Like a wide-range road network or energy program.
  • It can finance multiple projects under investment program in a sector or in various sectors.

Source:  The Hindu

Previous Year Question

Q.1) “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following:  (2022)

  1. Asian Development Bank
  2. International Monetary Fund
  3. United Nations Environment Programme Finance Initiative
  4. World Bank

 

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