IIFCL Secures Massive ECB Funding for Infrastructure Boost

State-owned IIFCL is set to raise USD 500 million in External Commercial Borrowings through MIGA, a World Bank Group member, to fund crucial infrastructure projects. The initiative aims to attract international capital without requiring a government guarantee, supporting sustainable growth in India's infrastructure sector.

IIFCL, a state-owned financial institution, has unveiled its strategy to raise USD 500 million through External Commercial Borrowings (ECBs) with assistance from the Multilateral Investment Guarantee Agency (MIGA). This move is intended to drive investment into India's vital infrastructure projects.

The ECB raise is part of a larger USD 2.5 billion program. It aims to pair the funding with the typical amortising profile of infrastructure loans, thus shielding IIFCL from rate shocks associated with fixed rate bonds. This innovative financial strategy drew substantial interest from international banks, with bids totaling nearly five times the proposed facility amount.

Deputy Managing Director Palash Shrivastava noted the global confidence shown in India's growth prospects through these commitments. MIGA's guarantee under the NHFO-SOE program further validates IIFCL's efforts, aiming to mobilise private capital efficiently and sustainably, without leaning on government guarantees, advancing India's infrastructure ambitions.