IIFCL plans to raise USD 1.6 billion to fund infrastructure development in India: MD Rohit Rishi

New Delhi, Mar 4 (PTI) India Infrastructure Finance Company Ltd (IIFCL) plans to raise USD 1.6 billion (about Rs 14,500 crore) from multilateral agencies and other overseas investors as part of resource mobilisation strategy to support infrastructure development across the country.

"Our strategy is to build a diversified and cost-effective long-term funding base aligned with infrastructure financing needs. In addition to domestic resources, we have mobilised resources from leading multilaterals such as ADB, KfW, JICA, EIB, and the World Bank," IIFCL's newly-appointed MD Rohit Rishi told PTI.

Until December, he said, IIFCL raised JPY 26 billion (around Rs 1,520 crore) from SMBC of Japan as External Commercial Borrowing at the reasonably low cost reflects confidence of lenders in India's growth story, particularly the sustained expansion of its infrastructure.

Going forward, he said, "We are exploring a USD 600 million blended finance facility and our debut Green Bond issuance. We are also in the process of seeking approval for raising around USD 1 billion as long-term commercial debt without sovereign guarantee, in collaboration with MIGA, a World Bank Group entity, which would result in reduction in financial burden on public exchequer." The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against non-commercial risks to facilitate the flow of foreign investment in developing countries and lift people out of poverty.

For the next financial year, resource mobilisation will be aligned with projected loan book growth and disbursement pipeline, with a focus on securing competitive, long-tenor funds and channelising greater institutional capital into Indian infrastructure, he added.

Speaking about the public offer, Rishi said, IIFCL has received the necessary approvals to proceed with its proposed initial public offer, with the Cabinet Committee on Economic Affairs clearing its listing on stock exchanges.

The approval has already been conveyed by the Department of Investment and Public Asset Management (DIPAM) to the company, he said.

"IIFCL (India Infrastructure Finance Company Ltd) is in the process of submitting the requisite details to the government to facilitate finalisation of the modalities, which is expected to materialise in the next financial year," he said.

The Budget 2026-27 provides emphasis on disinvestment and asset monetisation. The proposed initial public offer (IPO) forms part of the government's broader disinvestment and capital market listing strategy for public sector entities.

Currently, IIFCL is 100 per cent owned by the central government.

Established in 2006, it provides long-term financial assistance to viable infrastructure projects.

The authorised and paid-up capital of the company stood at Rs 10,000 crore and Rs 9,999.92 crore, respectively, as of March 31, 2025.

IIFCL has been registered as an NBFC-ND-IFC with the Reserve Bank of India (RBI) since September 2013 and follows the applicable prudential norms of the Reserve Bank of India.

IIFCL reported a 39 per cent jump in net profit to Rs 2,165 crore for the fiscal year ended in March 2025 against Rs 1,552 crore in the previous fiscal.

The company recorded its all-time high performance, for the fifth year in a row, with record Profit Before Tax (PBT) of Rs 2,776 crore, recording a growth of 37 per cent over the previous year's Rs 2,029 crore.

In the previous financial year, the company recorded its highest-ever annual sanctions and disbursements of Rs 51,124 crore and Rs 28,501 crore, respectively.

Building on this strong performance, IIFCL continues to sustain its growth momentum and is on track to surpass the previous year's results. As of January 31, 2026, annual sanctions have already reached Rs 53,217 crore, with disbursements at Rs 25,470 crore. PTI DP MR