IIFCL

• IIFCL is a wholly-owned Government of India company set up in 2006 to provide Long-term financing for viable infrastructure projects is provided via the Scheme for Financing Viable Infrastructure Projects via a Special Purpose Vehicle known as India Infrastructure Finance Company Ltd (IIFCL), sometimes known as SIFTI.
• The sectors eligible for IIFCL financial support are those included on the Harmonized List of Infrastructure Sub-Sectors, which has been authorized by the government and RBI and is updated on a regular basis. These basically encompass transportation, energy, water, sanitation, communication, social, and commercial infrastructure.
• IIFCL has been registered as an NBFC-ND-IFC with the RBI since September 2013.
• The authorized and paid-up capital of the firm as of September 30, 2015 were Rs 5,000 crore and Rs 3,900 crore, respectively.
• IIFCL has made cumulative total sanctions of over Rs 63,800 crore under direct loan to more than 360 projects and cumulative disbursements of over Rs 45,000 crore, including disbursements under refinance and takeout financing, as of September 30th, 2015.
• It was established in 2006 to offer long-term financing for infrastructure projects.
• It offers financial support to economically viable initiatives, which include those carried out by public sector companies, private sector companies, or private sector companies chosen under the Public Private Partnership (PPP) program.
• IIFCL raises financing from both local and international markets on the basis of government guarantees.
• The Credit Enhancement Scheme
• Under the Credit Enhancement Scheme, IIFCL offers a partial credit guarantee to raise the credit rating of bonds issued by infrastructure businesses to AA or higher for refinancing existing loans. IIFCL may provide credit enhancement up to 20% of total project cost (40% with backup guarantee), with a maximum of 50% of total Project Bonds.
• Credit enhancement permits the channeling of long-term money from investors such as insurance and pension funds into such bonds. The Asian Development Bank (ADB) is providing a backup guarantee facility to IIFCL for up to 50% of its underlying risk.
• In September 2015, the first bond offering of Rs 451 crore was successfully issued, with credit rating boosted by IIFCL’s partial credit guarantee under the plan. IIFCL is now working on many more similar deals.
• For Institutions
• IIFCL offers refinancing to banks and qualified financial institutions (FI) for infrastructure loans.
• IIFCL has disbursed more over Rs 6,200 crore via the refinancing plan as of September 30, 2015.
• Subsidiaries
• IIFC (UK): IIFC (UK), a wholly-owned subsidiary of IIFCL, was established in April 2008 to offer financial support in foreign currency for the import of capital equipment to Indian enterprises carrying out infrastructure projects in the nation. Till September 30th, 2015, IIFC (UK) has disbursed more than USD 1.6 billion.
• IIFCL Projects Limited (IPL):IPL, a 100% subsidiary of IIFCL, was established in 2012 to provide advisory services such as project appraisal and syndication, as well as project development services such as feasibility studies, project structuring, financial structuring, and the development of detailed business plans.
• IIFCL Asset Management firm Ltd. (IAMCL): IIFCL established a 100% subsidiary asset management firm, IAMCL, to handle the IIFCL Mutual Fund (IDF). In February 2014, IIFCL Mutual Fund launched its first IDF program via private placement. With full subscription, the plan became the first IDF Mutual Fund in the nation to be listed on the Bombay Stock Exchange (BSE).
• IIFCL MF (IDF) is currently in the process of launching two new schemes, both rated “AAA MF-IDF” by two domestic credit rating agencies, one focused on infrastructure sectors with a fund size of up to Rs 1,500 crore and the other on green initiatives (solar and wind energy, waste-to-energy, water and sanitation, etc.) with a fund size of up to Rs 1000 crore.
• IIFL funds projects in the following sectors: power, warehouses, gas pipelines, cold storage chains, fertilizer manufacturing industry, infrastructure in Special Economic Zones, international convention centers, tourism infrastructure, and transportation.
• Urban transportation, water supply, sewerage, solid waste management, and other physical infrastructure in cities.