India Infrastructure Finance Company Limited (IIFCL) has successfully advanced its plan to raise USD 500 million through External Commercial Borrowings (ECB) backed by the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group. Designed to boost funding for priority infrastructure projects nationwide, the facility marks one of the lowest-cost 15-year ECB tenures ever achieved by IIFCL.

Aligned with the amortizing nature of infrastructure loans benchmarked to floating rates, this structure helps IIFCL avoid the fixed-rate, fixed-tenure risks commonly associated with bonds.

Global Lenders Show Strong Confidence in India’s Infrastructure Expansion

Leadership Statement

Sh. Palash Shrivastava, Deputy Managing Director, IIFCL, said:

“This overwhelming response from global lenders reflects their confidence in India’s growth story, particularly the sustained expansion of its infrastructure. The success not only strengthens IIFCL’s ability to channelize long-term international capital into priority projects but also paves the way for other institutions to tap global funding more effectively. We remain grateful to our stakeholders and Government for their continuous support.”

MIGA’s In-Principle Approval Enables Landmark Funding Without Government Guarantee

The initiative follows extensive deliberations for a tailor-made guarantee product under MIGA’s Non-Honouring of Financial Obligations by a State-Owned Enterprise (NHFO-SOE) programme. MIGA has granted In-Principle approval to provide its guarantee for the full USD 500 million, enabling IIFCL to raise international resources without requiring a Government of India guarantee.

This first tranche is part of a larger USD 2.5 billion programme expected to bring substantial private capital into India’s infrastructure ecosystem.

15-Year Tenure With Embedded Hedging and Up to 95% MIGA Coverage

The ECB will carry a 15-year door-to-door tenor. Under the arrangement, MIGA will offer coverage of up to 95% on principal and future interest, complemented by an embedded hedging structure—a key component in achieving highly competitive pricing.

Financial closure for the first tranche is expected within this quarter.

Oversubscribed Five Times: Participation From 12 Global Banking Leaders

IIFCL witnessed an exceptional response during the RFP process, receiving bids worth nearly five times the proposed USD 500 million. The offer attracted 12 top-tier international banks across USD, EUR and JPY currencies.

Major participating institutions include:

• Citi Bank

• JP Morgan

• Standard Chartered

• HSBC

• Société Générale

• SMBC

• Credit Agricole Corporate & Investment Bank

• BNP Paribas

• MUFG

• Commerzbank

• BBVA

• Deutsche Bank

Boosting Sustainable, Climate-Aligned Infrastructure Development

The facility will finance projects listed under the Harmonised Master List of Infrastructure Sub-Sectors, with a particular emphasis on sustainable and climate-oriented initiatives.

Environmental and Social Safeguards (ESS) will be adhered to at IIFCL’s institutional level, aligned with both MIGA’s performance standards and Government of India safeguard norms, ensuring robust sustainability compliance.