IIFCL raises Rs 1,848 crore in bonds, its biggest of a Rs 34,200 crore plan
What's the deal? India Infrastructure Finance CompanyDealroom has a profile for this one. Try Dealroom → (IIFCL) has raised Rs 1,848 crore ($222 million) through non-convertible debentures to fund infrastructure projects across India. The state-owned lender priced the bonds at a 7.25% annual coupon, with a maturity of just under five years.
Why the demand? The issue drew bids worth Rs 3,048 crore — nearly six times the Rs 500 crore base size. IIFCL said the response reflects investor confidence in its "financial strength, prudent resource management and developmental mandate."
What's the endgame? This is the first bond issuance of IIFCL's financial year, part of an approved Rs 34,200 crore resource mobilisation programme for 2026–27. Proceeds will back projects spanning transportation, renewable energy, power, urban infrastructure, digital infrastructure, and nuclear energy.
Going global. IIFCL plans to tap international markets for about $1.30 billion over the next two to three months through external commercial borrowings, with a further $1 billion targeted subject to approvals. Recent Reserve Bank of IndiaDealroom has a profile for this one. Try Dealroom → measures, including a concessional USD-INR swap facility, are expected to cut hedging costs and make overseas borrowing more attractive.
By the numbers. The raise ranks among the largest debt rounds of its kind in the country — in the 95th percentile across 368 comparable deals. IIFCL's loan book stood at about Rs 80,515 crore as of December 31, 2025, and it aims to cross Rs 1 lakh crore and double assets within three years.
The signal: The bond raise landed on a day Indian corporates collectively tapped nearly Rs 16,000 crore through bonds, led by public sector lenders. For a government-backed infrastructure financier, the domestic corporate bond market remains a viable, cost-effective channel for long-tenor funding — and a foundation for India's Viksit Bharat 2047 ambitions.
Read more: Rediff Money
Image credit: Generated with Gemini
