NEW DELHI, MUMBAI, GPN/ NEWSMAN SACHIN: India Infrastructure Finance Company Limited (IIFCL), a wholly owned Government of India enterprise under the Department of Financial Services (Ministry of Finance), has successfully raised Rs1848 crore through the issuance of NCDs with a maturity of  4 years 11 months 2 days. The issue witnessed an overwhelming response from investors, attracting bids aggregating to Rs3048 crore, representing nearly 6 times the base issue size of Rs500 crore.

Finally, IIFCL decided to retain Rs1848 crore with a coupon of 7.25% per annum.

The successful issuance reflects the strong confidence of institutional investors in IIFCL’s sound financial position, prudent governance practices and its strategic role as the Government of India’s dedicated infrastructure financing institution.

The present issue marks IIFCL’s first domestic market borrowing during FY 2026-27, signalling the commencement of the Company’s resource mobilisation programme for the current financial year and reinforces the Company’s ability to mobilize resources efficiently from the capital markets. IIFCL intends to remain an active participant in the domestic debt capital market and will continue to tap the bond market through periodic issuances during the year, depending on funding requirements and prevailing market conditions.

The Board of Directors of IIFCL has approved an ambitious resource mobilisation programme of ₹34,200 crore for FY 2026-27 to support the growing financing requirements of India’s infrastructure sector. The programme envisages a diversified funding strategy comprising domestic bonds, capital market instruments and External Commercial Borrowings (ECBs). The Company continuously endeavours to optimize its cost of funds to facilitate affordable long-term financing for infrastructure projects.

In line with the policy framework of the Government of India and the Reserve Bank of India, IIFCL is also evaluating opportunities to raise funds through External Commercial Borrowings (ECBs). The recent measures announced by the Reserve Bank of India, including the concessional USD-INR swap facility for eligible ECBs, are expected to enhance the attractiveness of overseas borrowings by reducing hedging costs, thereby providing an additional avenue for accessing competitively priced long-term capital.

As part of this strategy, IIFCL plans access international markets to raise about USD 1.30 billion in next 2-3 months through External Commercial Borrowings and other debt instruments. The Company also intends to raise an additional USD 1 billion through overseas borrowings, subject to the necessary approvals from the Government of India and other regulatory authorities.

Commenting on the successful fund raise, Shri Rohit Rishi, Managing Director, IIFCL said: “The overwhelming response to our first bond issuance of the financial year reflects the confidence of the investor community in IIFCL’s financial strength, prudent resource management and developmental mandate. With an approved resource mobilisation programme of Rs34,200 crore for FY 2026-27, we are committed to maintaining a diversified funding mix through domestic and international markets to ensure the availability of long-term, competitively priced resources for financing India’s infrastructure growth.”

The proceeds of the present issue, together with funds proposed to be raised during the year, will support 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 of India’s vision of Viksit Bharat 2047.

About IIFCL

IIFCL is a government-owned financial institution that caters to the long-term financing needs of India’s infrastructure sector. It is amongst the most diversified public sector infrastructure lenders in terms of eligible infrastructure sub-sectors. IIFCL is also active in providing inputs and policy support in infrastructure financing space to the Government through various forums, with an aim to promote and develop world-class infrastructure in India.