interest rate risks inherent in bank loans it addedfor this to happen the banks will however need to adopt a stronger riskbased pricing model for project loans banks can price their loans to reflect the evolving risk profile of projects further said the reportthe report also highlighted that credit enhancement would be the key to making corporate bonds attractive to investors direct bond market funding of infrastructure projects comes with certain investment risks and investors typically are risk averse therefore there arises a need for creditenhanced structures that can help improve the credit ratings and increase their attractiveness for investors it saidhighlighting that while large investors such as pension funds provident funds and insurance companies have large corpuses they are restricted by regulation to invest only in highlyrated debt therefore there is a need to bridge the gap between the low risk appetite of institutional investors and relatively high credit risk profile of infrastructure projectsthe study further suggested to look at innovative channels like green bonds for financing governments ambitious target of having 160 gega watt gw of solar and wind capacity by 2022 with investments worth about rs 8 lakh crore more so as banking channel alone would not be able to support such huge requirementsthe study also highlighted the need to liberalise investment norms for pfs and insurance cos and allow them greater flexibility in their investments in terms of scope which will help channel more funds for the infrastructure sector