IIFCL plans $1 billion loan; in talks for $400 million ADB funding

India Infrastructure Finance Company (IIFCL) said it intends to secure a $1 billion loan from foreign investors — potentially its largest foreign‑currency borrowing — and is also looking at a distinct $400 million facility from the Asian Development Bank. After the Reserve Bank of India rolled out measures to attract dollar inflows and bolster the rupee, IIFCL joins other Indian entities accessing overseas funding. Those RBI steps let state‑owned companies and banks obtain foreign‑currency financing at reduced cost to hedge exchange‑rate risk.

The proposed $1 billion borrowing would carry a 15‑year tenor and an interest rate below 7 %. Simultaneously, IIFCL is negotiating with the Asian Development Bank for a separate 20‑year loan of about $400 million, according to Palash Srivastava, the firm’s deputy managing director, who spoke to Reuters on Monday.

IIFCL said it increased the planned 15‑year loan from $500 million to $1 billion after benefiting from the RBI incentive. Earlier, Reuters noted that three Indian development finance institutions aim to raise no less than $1.5 billion via foreign‑currency bank loans under the same RBI scheme.

Further, IIFCL is weighing a debut dollar bond of around $100 million by year‑end, Srivastava said. “The bond will likely be in the three‑ to five‑year tenor,” he added.

Dollar borrowings have picked up following the opening of the RBI’s subsidised borrowing window. HDFC Bank raised $750 million via a five‑year bond, while Axis Bank priced $800 million through a dual‑tranche dollar bond sale. State‑run Power Finance Corp raised $300 million via dollar bonds. State Bank of India and Bank of Baroda are also planning overseas fundraising.

Published on June 29, 2026