- India Infrastructure Finance Company Limited (IIFCL), the Government of India’s wholly owned infrastructure financing institution, has announced an ambitious plan to raise $2.3 billion through overseas borrowings and External Commercial Borrowings (ECBs) to support the country’s rapidly expanding infrastructure sector.
- Alongside its global fundraising strategy, IIFCL has successfully raised ₹1,848 crore through a Non-Convertible Debenture (NCD) issue, marking a strong start to its resource mobilisation programme for FY2026–27.
IIFCL Targets $2.3 Billion Global Fundraising
As part of its funding strategy, IIFCL plans to access international debt markets in two phases.
Proposed Overseas Borrowings
- $1.30 billion through External Commercial Borrowings (ECBs) and other international debt instruments over the next 2–3 months.
- An additional $1 billion through overseas borrowings, subject to approvals from the Government of India and regulatory authorities.
The initiative is aimed at securing long-term, competitively priced capital for financing large infrastructure projects across India.
RBI’s ECB Measures to Support Fundraising
- IIFCL stated that it is evaluating opportunities under the policy framework of the Government of India and the Reserve Bank of India.
- The company expects recent RBI measures to improve the attractiveness of overseas borrowing.
- A key factor is the concessional USD-INR swap facility for eligible ECBs, which helps reduce hedging costs for foreign borrowings.
- Lower hedging costs are expected to make international financing more economical, enabling infrastructure projects to access cheaper long-term funds.
₹1,848 Crore Raised Through NCD Issue
Before tapping overseas markets, IIFCL successfully completed its first domestic bond issue of FY2026–27.
NCD Issue Highlights
- Amount Raised: ₹1,848 crore
- Instrument: Non-Convertible Debentures (NCDs)
- Maturity: 4 years, 11 months and 2 days
- Coupon Rate: 7.25% per annum
The issue witnessed an overwhelming response from investors.
Strong Investor Interest
- Base Issue Size: ₹500 crore
- Total Bids Received: ₹3,048 crore
- Oversubscription: Nearly 6 times
Considering the strong demand, IIFCL retained ₹1,848 crore from the issue.
Part of ₹34,200 Crore Resource Mobilisation Plan
- The latest NCD issue forms part of IIFCL’s larger ₹34,200 crore resource mobilisation programme for FY2026–27.
- The objective is to ensure adequate long-term funding for India’s growing infrastructure financing requirements.
- According to IIFCL, maintaining a diversified funding mix across domestic and international markets will help provide cost-effective capital for priority sectors.
Infrastructure Sectors to Benefit
The funds raised during the financial year will support projects across multiple strategic sectors, including:
- Transportation
- Renewable Energy
- Power
- Urban Infrastructure
- Logistics
- Digital Infrastructure
- Water Supply and Sanitation
- Social Infrastructure
- Nuclear Energy
- Other priority infrastructure sectors
These investments align with the Government of India’s long-term Viksit Bharat 2047 vision.
Conclusion
IIFCL’s plan to raise $2.3 billion through overseas borrowings, combined with its successful ₹1,848 crore NCD issue, reflects strong investor confidence and India’s increasing focus on infrastructure-led growth. Supported by favourable RBI measures and a diversified funding strategy, the institution is well positioned to finance critical infrastructure projects that contribute to the country’s Viksit Bharat 2047 vision.