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Informist, Monday, Dec. 8, 2025

 

NEW DELHI – State-owned India Infrastructure Finance Co. Ltd. has advanced external commercial borrowing of up to $500 million from Multilateral Investment Guarantee Agency, a member of the World Bank Group-supported guarantee facility, aimed at financing priority infrastructure projects across the country. IIFCL secured the lowest cost for 15-year tenure to boost infrastructure financing, the company said in a release. This initial $500-million tranche is a part of a larger borrowing programme estimated at up to $2.5 billion.

 

"The ECB (external commercial borrowing) raise is expected to strengthen IIFCL's ability to finance long-term infrastructure projects, matching the amortising profile of typical infrastructure loans benchmarked to floating rate," IIFCL said. Under this arrangement, Multilateral Investment Guarantee Agency will provide coverage up to 95% on principal and future interest and also has an element of embedded hedging structure, it added. "Financial closure for the first tranche is targeted in this quarter." 

 

Informist had reported in September, citing the company's Deputy Managing Director Palash Srivastava, that IIFCL was planning to raise $500 million from the overseas market by December. Srivastava, who presently holds the additional charge of managing director after P. R. Jaishankar stepped down in May, had said loans from Multilateral Investment Guarantee Agency will help improve the company's margins.

 

The overseas fundraising is part of its overall borrowing plan of INR 360 billion for 2025-26 (Apr-Mar). Of the total borrowing, the company aims to raise INR 80 billion to INR 90 billion from the overseas market and the remaining from the domestic market, Srivastava had said.

 

According to the press release, IIFCL received an overwhelming response under the request-for-proposal process, wherein bids amounting to nearly five times the proposed $500 million loan were submitted by 12 leading international banks across multiple currencies like dollar, euro, and yen. "Major participants include Citi Bank, JP Morgan, Standard Chartered, HSBC, Socit Gnrale, SMBC, Credit Agricole-Corporate & Investment Bank, BNP Paribas, MUFG, Commerzbank, BBVA, and Deutsche Bank," it said.

 

Commenting on the advancement of the $500 million fundraise, Srivastava said the overwhelming response from global lenders reflects their confidence in India's growth story, particularly the sustained expansion of its infrastructure. "The success not only strengthens IIFCL's ability to channelize long-term international capital into priority projects but also paves the way for other institutions to tap global funding more effectively," he said.  End

 

US$1 = INR 90.15

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

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