IIFCL $500 mn External Commercial Borrowings oversubscribed 5 times

New Delhi: India Infrastructure Finance Company Limited (IIFCL) has moved ahead with plans to raise up to $500 million in External Commercial Borrowings (ECB) backed by the Multilateral Investment Guarantee Agency (MIGA), a World Bank Group entity. The funding will help IIFCL support long-term infrastructure projects, aligning repayments with the amortizing structure of floating-rate infrastructure loans and avoiding fixed-rate bond-related shocks.

IIFCL Deputy Managing Director Palash Shrivastava said the strong response from global lenders highlights confidence in India’s infrastructure growth. He added that the move boosts IIFCL’s capacity to mobilise long-term international capital and sets a precedent for other institutions exploring global funding avenues.

The initiative stems from discussions on creating a guarantee product under MIGA’s Non-Honouring of Financial Obligations by a State-Owned Enterprise (NHFO-SOE) programme. MIGA has granted in-principle approval for a $500 million guarantee, enabling IIFCL to raise funds without a sovereign guarantee. This tranche is part of a broader programme estimated at up to $2.5 billion.

The ECB facility will carry a 15-year door-to-door tenor, with MIGA covering up to 95% of principal and future interest, along with embedded hedging elements. Financial closure for the first tranche is expected this quarter. IIFCL received bids nearly five times the proposed amount from 12 major global banks (across USD, EUR and JPY), including Citi, JP Morgan, Standard Chartered, HSBC, Société Générale, SMBC, Credit Agricole-CIB, BNP Paribas, MUFG, Commerzbank, BBVA and Deutsche Bank.

The funds will support projects under the Harmonised Master List of Infrastructure Sub-Sectors, with a strong focus on sustainable and climate-aligned initiatives, aligned with MIGA’s environmental and social standards.