IIFCL initiates $1.8-bn ECB fundraising programme

State-owned India Infrastructure Finance Company Ltd (IIFCL) has kick-started its $1.8 billion External Commercial Borrowing (ECB) fund-raising programme by mobilising $200 million through international markets.

The mobilisation marks the first milestone in IIFCL’s broader international fund-raising programme, following Government approval to raise about $1.8 billion through ECBs, the company said in a statement on Sunday.

The company is pursuing opportunities across international financial markets with a focus on competitive pricing, prudent risk management and mobilisation of long-term resources to support India’s infrastructure financing requirements.

As part of the programme, IIFCL is envisaging raising about $1 billion through long-term ECBs, with tenors of up to 15 years, under the MIGA Guarantee Facility, in multiple tranches, it said. The Multilateral Investment Guarantee Agency (MIGA), a World Bank Group arm, provides guarantees against non-commercial risks to facilitate the flow of foreign investment in developing countries and lift people out of poverty.