IIFCL to raise ₹17,000 crore through bonds in FY24
Mumbai: State-owned infrastructure lender India Infrastructure Finance Company Ltd (IIFCL) plans to raise ₹17,000 crore in bonds this financial year as it readies a war chest to meet the growing demand for project finance, managing director PR Jaishankar said on Wednesday.
The company recently raised ₹500 crore through a 10-year bond at 7.46% and Jaishankar said the lender did not utilise the greenshoe option despite strong demand from investors.
“In a couple of months, we will raise another ₹2,000-3,000 crore through bonds. There will be about five to six such issues this financial year,” he said.
Jaishankar said IIFCL has set a target of sanctioning ₹50,000 crore of loans in FY24, of which it is likely to disburse ₹25,000 crore.
Established in 2006, IIFCL caters to infrastructure sub-sectors through products like direct lending, takeout finance, credit enhancement, InvITs, infrastructure bonds and refinances to banks along with other eligible financial institutions for their loans to infrastructure projects.
IIFCL posted year-on-year growth of 7.42% in its standalone loan portfolio to ₹42,271 crore in FY23 from ₹39,352 crore in FY22. To improve IIFCL’s asset quality and boost the availability of longer-tenor debt finance for infrastructure projects, IIFCL ventured into investment in infrastructure bonds in FY22 with Rs. 975 crore in project bonds and Rs. 325 crore in bonds issued by a renewable energy InvIT, it said in a statement in May.
“The company recorded a substantial increase in the investments made in bonds and InvITs of ₹6,200 crore and ₹6,800 crore respectively, aggregating to ₹13,000 crore as on 31 March,” it said.
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Updated: 21 Jun 2023, 06:42 PM IST
