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India Infrastructure Finance Company Ltd (IIFCL) plans to raise USD 1.6 billion (around INR 14,500 crore) from multilateral agencies and overseas investors as part of a diversified resource mobilisation strategy to fund infrastructure development. The state-owned lender is exploring a USD 600 million blended finance facility, a debut Green Bond issuance, and approval to raise USD 1 billion in long-term commercial debt without sovereign guarantee in partnership with MIGA. The company has also secured Cabinet clearance for its proposed initial public offer (IPO), with listing expected next financial year. IIFCL reported a 39% rise in net profit to INR 2,165 crore in FY25 and recorded its highest-ever sanctions and disbursements, signalling continued balance sheet expansion.
India Infrastructure Finance Company Ltd (IIFCL) is planning to raise USD 1.6 billion (approximately INR 14,500 crore) from multilateral agencies and overseas investors to strengthen its long-term funding base and support infrastructure financing across India. Advertisement
Rohit Rishi, newly appointed Managing Director of IIFCL, stated that the company's strategy is focused on building a diversified and cost-effective long-term resource base aligned with infrastructure lending requirements. In addition to domestic borrowings, IIFCL has mobilised funds from leading multilateral institutions including Asian Development Bank (ADB), KfW, Japan International Cooperation Agency (JICA), European Investment Bank (EIB) and the World Bank.
Until December, IIFCL raised JPY 26 billion (around INR 1,520 crore) from Sumitomo Mitsui Banking Corporation (SMBC) through External Commercial Borrowings at what it described as a competitive cost, reflecting lender confidence in India's infrastructure expansion.
Going forward, the company is exploring a USD 600 million blended finance facility and its debut Green Bond issuance. It is also seeking approval to raise around USD 1 billion in long-term commercial debt without sovereign guarantee in collaboration with the Multilateral Investment Guarantee Agency (MIGA). The structure is expected to reduce the financial burden on the public exchequer by leveraging risk mitigation mechanisms.
For the next financial year, resource mobilisation will be aligned with projected loan book growth and the disbursement pipeline, with emphasis on securing long-tenor, competitively priced funds and attracting greater institutional capital into Indian infrastructure.
On the capital markets front, IIFCL has received approval from the Cabinet Committee on Economic Affairs to proceed with its proposed initial public offer (IPO). The Department of Investment and Public Asset Management has conveyed the approval, and the company is currently submitting requisite details to finalise modalities. The listing is expected to materialise in the next financial year and forms part of the government's broader disinvestment and asset monetisation strategy under Budget 2026-27.
Currently 100% owned by the central government, IIFCL was established in 2006 to provide long-term financial assistance to viable infrastructure projects. As of March 31, 2025, its authorised capital stood at INR 10,000 crore and paid-up capital at INR 9,999.92 crore. The company is registered as an NBFC-ND-IFC with the Reserve Bank of India (RBI) and adheres to applicable prudential norms.
Financially, IIFCL reported a 39% increase in net profit to INR 2,165 crore in FY25, compared to INR 1,552 crore in the previous fiscal. Profit Before Tax rose 37% to INR 2,776 crore. During FY25, the company recorded its highest-ever annual sanctions and disbursements of INR 51,124 crore and INR 28,501 crore, respectively. As of January 31, 2026, annual sanctions had already reached INR 53,217 crore, with disbursements at INR 25,470 crore, indicating sustained growth momentum.
Source - PTI
5th Jun, 2025
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