IIFCL successfully raised Rs 1,848 crore through non-convertible debentures to fund vital infrastructure projects in India. Plans include a Rs 34,200 Cr mobilisation program and international borrowings.
The issue attracted an overwhelming response from investors, attracting bids worth Rs 3,048 crore, representing nearly 6 times the base issue size of Rs 500 crore, India Infrastructure Finance Company Ltd (IIFCL) said in a statement.
Finally, IIFCL decided to retain Rs 1,848 crore with a coupon of 7.25 per cent per annum. The bonds have a maturity of 4 years, 11 months and 2 days.
The successful issuance reflects the strong confidence of institutional investors in IIFCL’s sound financial position, prudent governance practices and its strategic role as the government’s dedicated infrastructure financing institution, it said.
The Board of IIFCL has approved an ambitious resource mobilisation programme of Rs 34,200 crore for 2026-27 to support the growing financing requirements of India’s infrastructure sector, it said, adding that the programme envisages a diversified funding strategy comprising domestic bonds, capital market instruments and external commercial borrowings (ECBs).
In line with the policy framework of the government and the Reserve Bank of India, IIFCL said it is also evaluating opportunities to raise funds through ECBs.
The recent measures announced by the Reserve Bank of India, including the concessional USD-INR swap facility for eligible ECBs, are expected to enhance the attractiveness of overseas borrowings by reducing hedging costs, thereby providing an additional avenue for accessing competitively priced long-term capital, it said.
As part of this strategy, it said, IIFCL plans to access international markets to raise about USD 1.30 billion in the next 2-3 months through External Commercial Borrowings and other debt instruments.
The company also expects to raise an additional USD 1 billion through overseas borrowings, subject to the necessary approvals from the government and other regulatory authorities, it noted.
Commenting on the successful fund raise, IIFCL Managing Director Rohit Rishi said the overwhelming response to its first bond issuance of the financial year reflects the confidence of the investor community in the company’s financial strength, prudent resource management and developmental mandate.
“With an approved resource mobilisation programme of Rs 34,200 crore for 2026-27, we are committed to maintaining a diversified funding mix through domestic and international markets to ensure the availability of long-term, competitively priced resources for financing India’s infrastructure growth,” he said.
The proceeds of the present issue, together with funds proposed to be raised during the year, will support infrastructure projects across transportation, renewable energy, power, urban infrastructure, logistics, digital infrastructure, water and sanitation, social infrastructure, nuclear energy and other priority sectors in line with the government’s vision of Viksit Bharat 2047, it added.
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