IIFCL plans to borrow $1 billion in a 15-year foreign-currency loan at under 7% interest, and is in talks with ADB for an additional $400 million 20-year loan.
The fundraising is part of a broader $1.6 billion resource mobilisation plan, with IIFCL also exploring a $600 million blended finance facility, a debut Green Bond, and a $100 million dollar bond by year-end.
The move follows RBI's subsidised foreign borrowing window, which has triggered a wider overseas fundraising rush among Indian financial institutions including HDFC Bank, Axis Bank, and Power Finance Corp.
India Infrastructure Finance Company (IIFCL) intends to raise $1 billion from international investors and is simultaneously considering an additional $400 million in financing from the Asian Development Bank (ADB), as per a Reuters report.
The decision follows a rise in dollar borrowings after the Reserve Bank of India introduced a subsidised foreign currency borrowing facility to increase dollar inflows and stabilise the rupee, making it one of the largest foreign currency loans.
1 June 2026
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The $1 billion loan will have a 15-year tenure with an interest rate below 7%, according to Palash Srivastava, deputy managing director of IIFCL, who spoke to Reuters. Separately, the company is negotiating with the ADB for an additional loan of about $400 million with a 20-year term.
Srivastava said IIFCL increased the size of the 15-year loan to $1 billion from the original $500 million after the RBI’s incentive scheme took effect.
IIFCL is also considering issuing its first dollar-denominated bond of about $100 million by the end of the year, probably with a maturity of three to five years, he added.
According to an earlier report, three Indian development finance institutions intend to secure at least $1.5 billion in foreign-currency bank loans using the RBI facility.
RBI Window Sparks Broader Borrowing Rush
IIFCL's fundraising reflects a wider trend of Indian financial institutions tapping overseas markets following the RBI's subsidised borrowing window.
HDFC Bank secured $750 million through a five-year bond issuance, while Axis Bank raised $800 million by launching a dual-tranche dollar bond offering.
The state-run Power Finance Corporation has raised $300 million by issuing dollar-denominated bonds. Similarly, the State Bank of India and Bank of Baroda are planning to secure capital from overseas markets.
The overseas borrowing plan is part of a larger resource mobilisation strategy.
In March, IIFCL's Managing Director Rohit Rishi said that the company's plan was to raise $1.6 billion in total from multilateral agencies and overseas investors to support infrastructure development across the country.
Until December, IIFCL raised JPY 26 billion from SMBC of Japan as External Commercial Borrowing. Going forward, he said the company is exploring a $600 million blended finance facility and a debut Green Bond issuance, and is also seeking approval to raise around $1 billion as long-term commercial debt without sovereign guarantee, in collaboration with MIGA, a World Bank Group entity.
Resource mobilisation for the next financial year will be aligned with projected loan book growth, with a focus on securing competitive, long-tenor funds and channelling greater institutional capital into Indian infrastructure.
