IIFCL Plans Record $1 Billion Overseas Loan, Seeks Additional ADB Funding

India Infrastructure Finance Company Ltd. (IIFCL) is planning to raise $1 billion through an overseas loan, which would be the largest foreign-currency borrowing in the company’s history. The state-owned infrastructure financier is also in discussions with the Asian Development Bank (ADB) for an additional 20-year loan of around $400 million. The move follows recent measures by the Reserve Bank of India (RBI) to encourage foreign currency inflows and support the rupee.

According to IIFCL, the proposed $1 billion loan will have a 15-year tenure and an interest rate below 7%. The company doubled the size of the planned borrowing from an initial $500 million after the RBI introduced incentives allowing state-run firms to access overseas funding at subsidised hedging costs. IIFCL is also considering issuing its first dollar-denominated bond of around $100 million before the end of the year.

The fundraising reflects a broader trend of Indian financial institutions tapping international markets for capital. Several major lenders, including HDFC Bank, Axis Bank and Power Finance Corporation, have already raised funds through dollar bonds, while State Bank of India and Bank of Baroda are also preparing overseas borrowings. The additional funding is expected to strengthen IIFCL’s ability to finance large infrastructure projects across the country.