IIFCL, a state-owned infrastructure lender, has raised ₹500 crore through a bond issuance. The 10-year paper were placed with investors (mainly institutional) on a private placement basis at 7.46 per cent coupon rate.
The base issue size stood at ₹500 crore, while the green shoe option was ₹1,500 crore. There was an overwhelming response with bid subscription of ₹4,725 crore, which is nearly 10x of the base issue size of ₹500 crore.
“We have decided to retain ₹500 crore and not exercise any part of the green shoe option. We will soon go for another round of fund raising once the interest rates come down”, P R Jaishankar, Managing Director, IIFCL told businessline.
It maybe recalled that Jaishankar had recently said that IIFCL plans to raise ₹16,000 crore this fiscal — mainly debt from multilateral financial institutions, domestic financial institutions and public markets— to fund business growth.
For the current fiscal, IIFCL is eyeing disbursements target of ₹17,000 crore as against ₹13,826 crore in 2022-23.
IIFCL had recorded its “highest-ever” standalone net profit at ₹1,076 crore in 2022-23. This was more than double the net profit of ₹514 crore recorded in the previous fiscal.
Encouraged by the strong show, IIFCL is now aiming to double its net profit for the current fiscal to over ₹2,000 crore.
IIFCL is the only government-owned financial institution that caters to all the infrastructure sub-sectors through its various products, viz, 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 also provides inputs and policy support in infrastructure financing space to the Government through various forums.
The company provides long-term finance to viable infrastructure projects encompassing various financial solutions to adopt best practices in financing infrastructure and developing core competencies in facilitating infrastructure development.
IIFCL has the mandate to finance greenfield and brownfield projects through products like Direct Lending, Takeout Finance, Subordinate Debt, Credit Enhancement Guarantee, Refinance, and InvITs.