IIFCL in talks with ADB, Korean Exim Bank to raise $600 million

New Delhi: State-owned India Infrastructure Finance Company Ltd (IIFCL) on Friday said it is currently in discussion with the Asian Development Bank and Korean Exim Bank to raise USD 600 million in blended finance to expand its investor base and lower the borrowing cost.

The discussions are in the advanced stage, and the agreement may be signed in December, IIFCL Managing Director PR Jaishankar said on the sideline of the Investors Meet.

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While IIFCL has the appetite to borrow the entire USD 600 million in one go, he said the availability of that much funds is contingent on the lending agency. So, around USD 200 million may come through this fiscal while the remaining may come in only in 2025-26.

"As far as our appetite is concerned, we can go beyond USD 600 million. So, we can immediately raise all USD 600 million also, given lenders are able to provide us," he said.

Besides raising funds through blended finance, Jaishankar said the infrastructure financier will likely raise USD 200 million through external commercial borrowings by January.

"We are in touch with ADB, World Bank and Japan International Cooperation Agency for fundraising via ECB route.

"The intent of overseas borrowings strategy is to ensure cost-effectiveness and long-term money. We are looking at 20-25 year tenor funds from multilateral resources," he said.

So far, IIFCL has raised 50 billion yen from JICA, USD 1,900 million from ADB and USD 195 million from the World Bank.

Additionally, the government has given the nod to IIFCL to raise funds via overseas green bonds, Jaishankar said.

"If we get the right premium and pricing for green bonds, we will go for that. Because we have enough sustainable projects, our appetite is very big for sustainable projects," he said.

Asked about the company's exposure in the Adani group, he said, IIFCL has investment, but it is fully ring-fenced.

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