Innovation Use of banks’ PCE facility by corporates 30. Partial credit enhancements (PCE) by banks may give a boost to the corporate bond market in its evolution phase.
Taking into account the feedback received, RBI has now issued the final guidelines under which the banks may provide PCE to support (senior) project bonds issued by companies/SPVs, and thereby improve the credit rating of the bond issue making them more attractive to certain specific set of investors, such as the institutional and long term investors.