IIFCL mobilises ₹1,848 cr via bonds, strengthens resource base for infra financing

India Infrastructure Finance Company announced on Sunday that it has secured ₹1,848 crore through the issuance of non‑convertible debentures (NCDs) aimed at financing infrastructure projects nationwide.

The offering drew a robust response from investors, garnering bids totaling ₹3,048 crore—about six times the base issue size of ₹500 crore—according to a statement from India Infrastructure Finance Company Ltd (IIFCL).

IIFCL ultimately retained ₹1,848 crore, setting a coupon rate of 7.25 % per annum. The debentures mature in 4 years, 11 months and 2 days.

The successful placement underscores institutional investors’ confidence in IIFCL’s solid financial standing, prudent governance, and its role as the government’s dedicated infrastructure financing arm, the company noted.

The IIFCL Board has sanctioned an ambitious resource‑mobilisation plan of ₹34,200 crore for FY 2026‑27 to meet the expanding funding needs of India’s infrastructure sector. The plan envisions a diversified financing mix, including domestic bonds, capital‑market instruments, and external commercial borrowings (ECBs).

In alignment with government and Reserve Bank of India policy frameworks, IIFCL is also exploring avenues to raise funds via ECBs.

Recent RBI measures, such as the concessional USD‑INR swap facility for eligible ECBs, are expected to make overseas borrowing more attractive by lowering hedging costs, thus providing another channel for accessing competitively priced long‑term capital, the company added.

Under this strategy, IIFCL intends to tap international markets to raise roughly $1.30 billion over the next two to three months through ECBs and other debt instruments.

The firm also anticipates securing an additional $1 billion from overseas sources, contingent upon obtaining the requisite approvals from government and regulatory bodies.

Commenting on the fund‑raise, IIFCL Managing Director Rohit Rishi said the enthusiastic response to the company’s inaugural bond issue of the financial year highlights investor confidence in its financial strength, prudent resource management, and developmental mandate.

“With an approved resource‑mobilisation programme of $34,200 crore for 2026‑27, we are committed to maintaining a diversified funding blend from domestic and international markets to ensure long‑term, competitively priced resources for India’s infrastructure growth,” he stated.

The proceeds from this issue, together with funds slated for raising during the year, will back infrastructure projects across transportation, renewable energy, power, urban infrastructure, logistics, digital infrastructure, water and sanitation, social infrastructure, nuclear energy, and other priority sectors, in line with the government’s vision of Viksit Bharat 2047, the company concluded.

Published on July 5, 2026