Profile

India Infrastructure Finance Company Limited (IIFCL)

 

Funding Foundation of the Future…

IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term financial assistance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

The sectors eligible for financial assistance from IIFCL are as per the Harmonized list of Infrastructure Sub-Sectors as approved by the Government and as amended from time to time. These broadly include transportation, energy, water, sanitation, communication, social and commercial infrastructure.

IIFCL has been registered as a NBFC-ND-IFC with RBI since September 2013. 

The authorized and paid up capital of the company as on 31st March 2018 stood at Rs 6,000 Crore and Rs 4,102 Crore, respectively.

On a standalone basis, till 31st March 2018, IIFCL made cumulative gross sanctions of Rs 81,040 Crore to 459 projects under direct lending and cumulative disbursements of Rs 60,136 Crore (including disbursements of Rs 7,231 Crore under Refinance and Rs 15,413 Crore under Takeout Finance).

 Present Offerings

IIFCL has been offering its financial support to the infrastructure sector through the following products/services. 

FOR GREENFIELD PROJECTS

Direct Lending

Senior Debt: As part of a consortium, IIFCL provides long-term funds to commercially viable infrastructure projects, taking an exposure of up to 20% of Total Project Cost (including Subordinate Debt, if any). In case of PPP projects that have the provision of compulsory buyback by the authority on termination, IIFCL may offer loan with tenor longer than other lenders and remain sole lender, if necessary, after other lenders are paid out.

Subordinate Debt: IIFCL provides subordinate debt up to 10% of the project cost (as part of its exposure of up to 20% of Total Project Cost). This type of debt is typically treated as Quasi-Equity by lenders.

Till 31st March 2018, on a standalone basis, IIFCL made cumulative gross sanctions of Rs 81,040 Crore to 459 projects, and cumulative disbursements of Rs 37,491 Crore under Direct Lending.

 FOR BROWNFIELD PROJECTS

Takeout Finance

The Takeout Finance Scheme of IIFCL is aimed at addressing the Asset Liability Mismatch and exposure constraints faced by banks by taking out loan from the books of the banks. This helps banks to free up their funds for investing in new infrastructure projects. Under this scheme, IIFCL can lend up to 30% of Total Project Cost (including Direct Lending). Disbursement in case of Takeout Finance generally takes place one year after the actual Commercial Operation Date (COD).

Under the Takeout Finance scheme, up to 31st March 2018, IIFCL made cumulative gross sanctions of Rs 24,393 Crore to 108 projects and disbursed over Rs 15,400 Crore.

 

Credit Enhancement Scheme

Under the Credit Enhancement Scheme, IIFCL provides partial credit guarantee to enhance the credit rating of bonds issued by infrastructure companies to AA or higher for refinancing of existing loans. IIFCL can undertake credit enhancement to the extent of 20% of Total Project Cost (40% of Total Project Cost with backstop guarantor) subject to a maximum of 50% of the total amount of Bond Issue. 

Credit enhancement enables channelization of long term funds from investors like insurance and pension funds in such bonds.

IIFCL became the first organization to successfully operationalize the Credit Enhancement Scheme in 2015-16. Till 31st March 2018, IIFCL has provided sanctions to 15 projects with a bond issue size of Rs 8,380 Crore and initial IIFCL guarantee of Rs 2,256 Crore. So far, three transactions, with bond issue of Rs 1,338 Crore and initial IIFCL guarantee of Rs 346 Crore have been completed.

 FOR INSTITUTIONS

Refinance Scheme

IIFCL provides refinance to banks and other eligible financial institutions (FI’s) for their loans to infrastructure projects. 

Under the refinance scheme, till 31st March 2018, IIFCL made cumulative disbursements of Rs 7,231 Crore.  

Subsidiaries

IIFC (UK): IIFC (UK), a wholly-owned subsidiary of IIFCL, was set up in April 2008 to provide financial assistance in foreign currency, for the import of capital equipment, to companies implementing infrastructure projects in India. Till 31st March 2018, IIFC (UK) made cumulative disbursements of over USD 1.9 billion.  

IIFCL Projects Ltd (IPL): IPL, a wholly-owned subsidiary of IIFCL, was set up in 2012 as a dedicated project advisory company that is involved in the areas of Project Appraisal, Debt Syndication, Transaction Advisory, and Infrastructure Consultancy services. Till date the company has appraised infrastructure projects with capital cost of about Rs 100,000 Crore. The company has recently achieved financial closure of Waste to Energy Plant. Central Ministries like Ministry of Shipping, Ministry of Urban Development, Ministry of Water Resources, River Development and Ganga Rejuvenation have engaged the company in various capacities. The company is actively advising/ advised various state government entities like OUIDF, MIDFC, MSRDC, HPIDB, KIIFB. The company has been empanelled by various agencies like IPA, Sagarmala Development Corporation (SDC), Goa Tourism Department, Climate Bond Initiative etc. The company carried out capacity building program for a state entity to raise funds from Capital market and with project developers/ financers on climate change impact and building resilient and sustainable infrastructure. IPL is regularly invited to various forums, conferences, round table discussions, committees etc. for their inputs on developing infrastructure.  

IIFCL Asset Management Company Ltd. (IAMCL): IIFCL formed a wholly-owned subsidiary – an asset management company viz. IAMCL to manage the IIFCL Mutual Fund (IDF). In Feb 2014, IIFCL Mutual Fund launched its maiden IDF scheme through private placement which successfully raised Rs 300 Crore. The scheme was the first IDF Mutual Fund in the country to be listed on Bombay Stock Exchange (BSE). Asset Under Management (AUM) of IIFCL Mutual Fund (IDF) Series- I is Rs 429 Crore as on 31st May 2018.

Further, in April 2017, IAMCL has successfully closed its second IDF Series II AAA rated scheme with six institutional investors with a fund size of Rs 200 Crore. Asset Under Management (AUM) of IIFCL Mutual Fund (IDF) Series II is Rs 213 Crore as on 31st May 2018.

IAMCL is in the process of launching Alternative Investment Fund (AIF) dedicated to fund Green sector (Solar and wind energy, waste-to-energy, water sanitation etc.)

Sources of Funding

IIFCL raises funds through long-term resources from both domestic as well as international markets

Domestic Sources

IIFCL raises debt (both short-term and long-term) from the market through various suitable instruments created for the purpose.  Till 31st March 2018, the company raised around Rs 32,600 Crore from the domestic market. 

International Sources

IIFCL has established strong relationships with Multilateral Financial Institutions like Asian Development Bank (ADB), World Bank, KfW, European Investment bank (EIB) and Japan International Cooperation Agency (JICA) and has lines of credit to the extent of USD 1.9 Bn, USD 195 Mn, Euro 50 Mn, Euro 200 Mn and JPY 50 Bn respectively.

These relationships have helped IIFCL to raise long-term resources which enable development of innovative financial products, as well as adopt best practices, especially those pertaining to Environmental and Social Safeguard Framework and Procurement Procedures.

Rating

IIFCL’s various domestic long term borrowings (bonds) have been rated ‘AAA/ AAA(SO)’ by various rating agencies and BBB- by S&P which is at par with sovereign rating.

 IIFCL Snapshot

Key Financials

Figures in Rs Crore

Particulars

FY Ended Mar 2014

 

FY Ended Mar 2015

 

FY Ended Mar 2016

 

FY Ended Mar 2017

 

FY Ended Mar 2018*

Total Assets

38,756

39,064

42,274

42,157

43,210

Net Worth

(as on 31stMarch)

5,782

6,796

7,265

7,424

6,402

Net Profit

521

753

468

69

(1155)

Infrastructure Loans

23,881

26,995

31,612

34,070

32,585

·         Based on provisional financials

Sector-Wise Exposure of IIFCL

 Cumulative Gross Sanctions under Direct Lending

(upto 31st March 2018)

                                        Figures in Rs Crore

 Sector

No. of Projects

Project Cost

Gross Sanctions

 Road

236

259,193

36,072

 Power

145

349,915

33,869

 Airport

3

27,701

2,530

 Port

18

26,120

3,657

 Urban Infrastructure

15

47,963

3,764

 Railway

3

3,194

639

 PMDO*

38

8,602

260

 Telecomm

1

3,750

250

Total

459

726,438

81,040

 

Sector-wise Cumulative Disbursements

(upto 31st March 2018)

          Figures in Rs Crore

Sector

No. of Projects

Project Cost

Amount disbursed

Direct Lending

 

 

 

 Road

181

193,274

18,438

 Power

96

225,171

16,602

 Airport

3

27,701

858

 Port

10

12,725

864

Urban Infrastructure

7

1,802

307

Railway

1

600

22

PMDO

27

4,744

151

Telecomm.

1

3,750

248

Total (A)

326

469,766

37,491

Takeout Finance

 

 

 

 Road

22

30,534

4,115

 Power

26

50,972

7,800

 Airport

2

15,777

1,485

 Port

5

8,952

1,988

Urban Infrastructure

2

107

26

Total (B)

57

106,342

15,413

Sub-Total (A+B)

 

 

52,905

Refinance (C)

 

 

7,231

Grand Total (A+B+C)

 

 

60,136