IIFCL’s Inaugural USD 500 Million ECB Oversubscribed Five Times, Secures Lowest Cost in 15 Years to Boost Infrastructure Financing
New Delhi, Dec 08: India Infrastructure Finance Company Limited (IIFCL) has successfully raised USD 500 million in External Commercial Borrowings (ECB) through the Multilateral Investment Guarantee Agency (MIGA), a World Bank Group-supported guarantee facility. The initiative, aimed at financing priority infrastructure projects, witnessed overwhelming interest, with bids nearly five times the proposed facility.
The ECB, structured with a 15-year tenor, is designed to match the amortizing profile of typical infrastructure loans and avoid fixed rate-fixed tenure shocks commonly seen in bonds. MIGA provides coverage of up to 95% on principal and future interest, with an embedded hedging structure, enhancing the financial security of the facility.
Sh. Palash Shrivastava, Deputy Managing Director, IIFCL, stated:
“The strong response from global lenders reflects confidence in India’s growth story and infrastructure expansion. This success strengthens IIFCL’s ability to channel long-term international capital into priority projects and sets a benchmark for other institutions seeking global funding.”
Twelve leading international banks participated in the bidding, including Citi Bank, JP Morgan, Standard Chartered, HSBC, Société Générale, SMBC, Credit Agricole-Corporate & Investment Bank, BNP Paribas, MUFG, Commerzbank, BBVA, and Deutsche Bank. The facility supports sectors under the Harmonised Master List of Infrastructure Sub-Sectors, with a particular focus on sustainable and climate-aligned projects, adhering to Environmental and Social Safeguards (ESS) aligned with MIGA and Government of India standards.
This initial tranche of USD 500 million forms part of a larger programme targeting up to USD 2.5 billion in international capital mobilization for infrastructure financing, without requiring a direct Government of India guarantee. The financial closure for the first tranche is expected within this quarter.