State-owned infrastructure lender India Infrastructure Finance Company Ltd (IIFCL) will move ahead with its plan to raise approximately $200 million through external commercial borrowing (ECB) this month, Managing Director P R Jaishankar has confirmed.

The funds are expected to bolster IIFCL’s efforts to support key infrastructure projects across the country, aligning with the government’s push for enhanced infrastructure development.

“We are on track to raise $200 million through ECB this month as planned,” Jaishankar said, highlighting the institution’s commitment to leveraging foreign capital to fuel India’s infrastructure growth.

This planned borrowing underscores IIFCL’s strategy to diversify funding sources and maintain liquidity for its lending operations amid growing demand for infrastructure financing in India.

“We are waiting for an opportune time to tap the market (private debt market). It would most likely be the Japanese or US debt market. There is no change in our plans”, Jaishankar told businessline on the sidelines of IIFCL’s 20th Foundation Day event when asked about the status of the overseas fund raising. 

Raise funds

This will be IIFCL’s first ECB since its inception in 2007. So far, the company had only raised funds from multilateral institutions.

IIFCL wants to raise $200 million ECB as part of the remaining ₹8,000 crore it plans to mobilise by March 2025, taking the overall fund mop up this fiscal to ₹29,000 crore. 

IIFCL had planned to raise ₹29,000 crore during the current fiscal to fund business growth of 20 per cent. Out of that 75 per cent has been mobilised in the three quarters and 25 per cent would be done during this quarter, Jaishankar noted. 

IIFCL has also firmed up blended finance fund mop up with Asian Development Bank and Korean Development Bank. 

As of March 2024, IIFCL’s standalone loan book stood at ₹51,000 crore, and its consolidated book at ₹60,000 crore. By March 2025, these figures are expected to grow to ₹69,000-₹70,000 crore and ₹75,000 crore, respectively.