India Infrastructure Finance Seeks $600 Million in Blended Finance Boost

India Infrastructure Finance Company Ltd is negotiating with Asian Development Bank and Korean Exim Bank to raise $600 million through blended finance, aiming to expand its investor base and reduce borrowing costs. The agreement is expected by December, with other fund-raising plans also underway.

State-owned India Infrastructure Finance Company Ltd (IIFCL) is poised to raise $600 million in blended finance, engaging in advanced discussions with the Asian Development Bank and Korean Exim Bank. The pact, intended to broaden the company's investor base and reduce borrowing costs, may be finalized in December, according to IIFCL Managing Director PR Jaishankar.

Jaishankar emphasized the company's readiness to secure the entire amount immediately, though fund availability relies on lending institutions. Approximately $200 million is projected to be acquired in the current fiscal year, with the remainder expected by 2025-26. The company is also planning to secure an additional $200 million through external commercial borrowings by January.

With considerable experience in overseas fundraising, IIFCL has already raised significant funds from international entities such as JICA, ADB, and the World Bank. Furthermore, the government has approved IIFCL's procurement of funds through overseas green bonds, provided favorable conditions are met.

(With inputs from agencies.)