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 2017 stood at Rs 6,000 Crore and Rs 4,002 Crore, respectively.

 

On a standalone basis, till 31st March 2017, IIFCL made cumulative gross sanctions of Rs 77,431 Crore to 442 projects under direct lending and cumulative disbursements of Rs 55,966 Crore (including disbursements of Rs 6,256 crore under Refinance and Rs 14,856 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 2017, on a standalone basis, IIFCL made cumulative gross sanctions of over Rs 77,400 Crore to more than 440 projects, and cumulative disbursements of over Rs 34,850 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 2017, IIFCL made cumulative gross sanctions of around Rs 24,000 Crore in 105 projects and disbursed over Rs 14,850 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.

In September 2015, first bond issue of Rs 451 Crore, with credit rating enhanced by partial credit guarantee provided by IIFCL under the scheme, was successfully placed. The second transaction under the Scheme was also completed during 2015-16 with a bond issue of Rs. 126.7 Crore raised for a solar power project. IIFCL is working on several such transactions.

 

            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 2017, IIFCL made cumulative disbursements of over Rs 6,200 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 2017, 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 to provide advisory services including project appraisal and syndication services, as well as project development services involving conducting feasibility studies, project structuring, financial structuring and development of detailed business cases.
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).
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
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 2017, the company raised around Rs 32,600 Crore from the domestic market.
 
 
International Sources
 
IIFCL has established strong relationships with bilateral and multilateral financial institutions like ADB, World Bank, KfW, European Investment Bank (EIB) and Japan International Cooperation Agency (JICA) and has committed lines of credit to the extent of USD 1.9 billion, USD 195 million, Euro 50 million, Euro 200 million, JPY 50 billion, respectively, from these institutions. 

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.

 

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
Total Assets
38,756
39,064
42,274
42,157
Net Worth
(as on 31stMarch)
5,782
6,796
7,265
7,424
Net Profit
521
753
468
69
Infrastructure Loans
23,881
26,995
31,612
34,070
 
 
 
 
Sector-Wise Exposure of IIFCL
 
Cumulative Gross Sanctions under Direct Lending (upto 31th March 2017)
 
                                                           Figures in Rs Crore
Sector
No. of Projects
Project Cost
Gross Sanctions
 Road
229
252,696
35,038
 Power
139
328,344
31,918
 Airport
3
27,701
2,530
 Port
17
22,049
3,139
 Urban Infrastructure
12
47,426
3,658
 Railway
3
3,194
639
38
8,602
260
 Telecomm
1
3,750
250
Total
442
693,762
77,431
 
 
 
Sector-wise Cumulative Disbursement (upto31th March 2017)
 
                                                                 Figures in Rs Crore
Sector
No. of Projects
Project Cost
Amount disbursed
Direct Lending
 
 
 
 Road
174
187,718
17,258
 Power
87
210,329
15,317
 Airport
2
25,801
846
 Port
9
9,040
737
Urban Infrastructure
7
1,802
276
Railway
1
600
22
PMDO
27
4,744
151
Telecomm.
1
3,750
248
Total (A)
308
443,783
34,854
Takeout Finance
 
 
 
 Road
22
30,534
4,115
 Power
22
48,849
7,242
 Airport
5
15,777
1,485
 Port
5
8,952
1,988
Urban Infrastructure
2
107
26
Total (B)
56
104,219
14,856
Sub-Total (A+B)
 
 
49,710
Refinance (C)
 
 
6,256
Grand Total (A+B+C)
 
 
55,966