India Infrastructure Finance Company Ltd (IIFCL), a 100 per cent government-owned finance company, plans to raise up to Rs 1,200 crore through bonds to augment its capital base.
The Delhi-based infrastructure lending company has seen pressure on its capital adequacy due to higher provisions for non-performing assets.
India Ratings has assigned “AAA” rating to the proposed subordinated debt which factors in the Government of India’s support.
IIFCL is a critical vehicle for the government to bridge the funding gap in the infrastructure space, by providing low-cost funding. Based on the lending model of IIFCL, constant equity infusions from the government