IIFCL Begins $1.8 Bn Global Fundraising Drive With $200 Mn Raised In First Tranche

State-owned India Infrastructure Finance Company Ltd (IIFCL) has begun a $1.8 billion External Commercial Borrowing (ECB) fundraising programme, raising $200 million through international markets as the first tranche.

The fundraising is part of a wider programme approved by the government, under which IIFCL plans to mobilise around $1.8 billion through ECBs, the company said in a statement on Sunday, as per PTI.

The company said it is exploring international financial markets to secure competitively priced funding while maintaining a focus on risk management and long-term resources for infrastructure financing.

$1 Bn Long-Term ECB Plan

IIFCL said it plans to raise around $1 billion through long-term ECBs under the Multilateral Investment Guarantee Agency (MIGA) Guarantee Facility.

The borrowings are expected to have tenors of up to 15 years and will be raised in multiple tranches.

MIGA, a member of the World Bank Group, provides guarantees against certain non-commercial risks to support foreign investment in developing economies.

The proposed long-term funding is intended to finance infrastructure projects that typically require longer periods to generate returns. IIFCL said the programme would also strengthen its ability to provide long-term financing to the infrastructure sector.

The company said the fundraising effort would diversify its sources of funds and give it access to international pools of long-term capital.

IIFCL Seeks Global Capital

IIFCL Managing Director Rohit Rishi said the government approval for around $1.8 billion of ECB mobilisation, including long-term borrowings under the MIGA Guarantee Facility, had enabled the company to establish 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, as per PTI.

Rishi said IIFCL has raised more than $3.5 billion from international markets over the years and used the funds for infrastructure financing.

"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.