IIFCL targets Rs 1 lakh crore infra financing disbursement over next 3 years

IIFCL Managing Director PR Jaishankar

The India Infrastructure Finance Company Ltd (IIFCL) plans to disburse Rs 1 lakh crore for infrastructure projects over the next three years, supported by blended finance and external commercial borrowings (ECBs). The move aligns with its vision of fostering infrastructure growth while maintaining financial resilience, IIFCL Managing Director PR Jaishankar said.

Highlighting the company's growth trajectory, Jaishankar told Moneycontrol, “In the last four years, we disbursed Rs 75,000 crore, and now, we aim to disburse Rs 1 lakh crore in the next three years. This will involve scaling financing activities to meet the growing needs of the infrastructure sector.”

In the current fiscal, IIFCL plans to raise over Rs 8,000 crore in the current quarter through a mix of blended finance and ECBs. "We are pursuing a balanced growth strategy involving debt and equity while leveraging support from the government, multilateral agencies, and domestic resources," he explained.

He added, "The net worth of the company is Rs 15,000 crore, and we aim to grow at a 20 percent CAGR. This financial strategy will help us achieve our targets while meeting the greater needs of infrastructure financing.”

Jaishankar expressed optimism about global economic conditions, emphasising that a softer interest rate regime could bolster infrastructure growth. “Inflationary pressures are easing, and economies globally are showing clear intentions of cutting interest rates. This will support our expansion plans,” he noted.

Plans for FY25

IIFCL aims to raise Rs 29,000 crore in FY25, of which 75 percent has already been secured. The company is on track to surpass last year’s growth, with plans to complete fund-raising through ECBs, domestic bonds, and blended finance. “We are raising $600 million through blended finance and $200 million via ECBs, ensuring a basket of diverse resources,” Jaishankar shared.

IIFCL is also working towards becoming a near-zero NPA company by the end of FY25. “Our strategic decision is to maintain a 0.01 percent NPA level. Currently, 92 percent of our assets are externally rated A, AA, or AAA, reflecting our operational and financial robustness,” Jaishankar said.

The MD emphasised that IIFCL has diversified its operations while ensuring asset quality. “Our performance of assets remains strong, and our aim to achieve zero NPA is realistic and strategic. We believe in keeping a small beauty spot but ensuring a sustainable financial future,” he added.