IIFCL's $500-m ECB oversubscribed five times, at lowest cost

New Delhi: India Infrastructure Finance Co. Ltd. (IIFCL) on Monday said that its $500 million external commercial borrowing (ECB) was oversubscribed five times at the lowest cost for a 15-year tenure. The state-run infrastructure financing firm said in a statement that it had advanced its ECB plan to raise up to $500 million through the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, aimed at financing priority infrastructure projects across the country.

It added that the $500 million tranche formed part of a larger fundraising plan estimated at up to $2.5 billion.

The ECB is expected to strengthen the company's ability to finance long-term infrastructure projects, matching the amortising profile of typical infrastructure loans benchmarked to a floating rate, it said.


"The success not only strengthens IIFCL's ability to channelise long-term international capital into priority projects but also paves the way for other institutions to tap global funding more effectively," said IIFCL's deputy managing director Palash Shrivastava. - Our Bureau