IIFCL to raise USD 500 mn from ECB in Q3 to fund infra projects

New Delhi, Sep 19 (PTI) State-owned India Infrastructure Finance Company Ltd. (IIFCL) is planning to raise USD 500 million from overseas market by December to fund infrastructure projects in the country.

The overseas fundraise is part of an initiative is to bring down its cost of funds, IIFCL Deputy Managing Director Palash Srivastava told PTI.

"We have already raised over USD 150 million so far this year, so overall we are looking at raising USD 650 million by December," he said.

The overseas fundraising is part of its overall borrowing plan of Rs 36,000 crore for 2025-26.

Of the total borrowing, the company aims to raise Rs 8,000-9,000 crore from the overseas market and the remaining from the domestic market, Srivastava said.

The company is looking at loans from Multilateral Investment Guarantee Agency (MIGA) that will help improve the company's margins, he said.

"Over the years, we have brought down our dependence on government-guaranteed borrowing and are focussing on raising funds on our books," Srivastava, who holds the additional charge of Managing Director after P R Jaishankar stepped down in May, said.

IIFCL reported a 39 per cent jump in net profit to Rs 2,165 crore for FY25 on account of improvement in core income.

The state-owned infrastructure finance company had earned a net profit of Rs 1,552 crore in the previous fiscal year.

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

The company net worth rose 15 per cent to Rs 16,395 crore in FY25 from Rs 14,266 crore in the preceding fiscal year, thereby increasing capacity for IIFCL to lend more to infrastructure projects with higher exposure limits.

During the year, the company posted record performance with the highest-ever sanctions and disbursements at Rs 51,124 crore and Rs 28,501 crore, respectively.

The cumulative sanctions and disbursements stood at Rs 3.06 lakh crore and Rs 1.56 lakh crore, respectively, as of March 31, 2025.

To fund business growth, the company plans to raise over Rs 30,000 crore during the current financial year.

With respect to asset quality, IIFCL has brought down gross non-performing assets to 1.11 per cent from 1.61 per cent a year ago. The net NPA of the company also declined to 0.35 per cent from 0.46 per cent in the year-ago period. PTI DP TRB TRB