IIFCL initiates $1.8 bn external commercial borrowing fundraising programme

State-owned India Infrastructure Finance Company Ltd (IIFCL) has kick-started its $1.8 billion External Commercial Borrowing (ECB) fund-raising programme by mobilising $200 million through international markets.

The mobilisation marks the first milestone in IIFCL's broader international fund-raising programme, following government approval to raise about $1.8 billion through ECBs, the company said in a statement on Sunday.

The company is pursuing opportunities across international financial markets with a focus on competitive pricing, prudent risk management and mobilisation of long-term resources to support India's infrastructure financing requirements.

As part of the programme, IIFCL is envisaging raising about $1 billion through long-term ECBs, with tenors of up to 15 years, under the MIGA Guarantee Facility, in multiple tranches, it said.

 

The Multilateral Investment Guarantee Agency (MIGA), a world Bank Group arm, provides guarantees against non-commercial risks to facilitate the flow of foreign investment in developing countries and lift people out of poverty.

The proposed long-term funding will support infrastructure projects with long gestation periods and further strengthen IIFCL's capacity to provide long-term financing to the sector, it said.

The fundraising programme marks a strategic step towards diversifying IIFCL's funding base and accessing global pools of long-term capital, it said.

The company will continue to leverage opportunities in international markets to mobilise competitive and sustainable resources in support of India's infrastructure development, it said.

Speaking on the development, IIFCL Managing Director Rohit Rishi said with government approval for about $1.8 billion of ECB mobilisation, including long-term ECBs under the MIGA Guarantee Facility, IIFCL has put in place a structured fundraising programme.

"We remain committed to executing the programme within the stipulated timeframe and supporting the country's infrastructure financing requirements," he said.

IIFCL has built a strong track record of mobilising international capital for India's infrastructure development, having raised over $3.5 billion from international markets over the years and deployed these resources towards infrastructure financing, he said.

The commencement of the $1.8 billion ECB programme builds on this experience and further strengthens our ability to channel long-term global capital towards projects that are critical to India's growth and development, he added.