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 finance 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 RBI 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 30th September 2016 stood at Rs 6,000 Crore and Rs 4,002.32 Crore, respectively. 

 

On a standalone basis, till 30th September 2016, IIFCL has made cumulative gross sanctions of Rs 70,903 crore to 410 projects under direct lending and has made cumulative disbursements of Rs 50,989 crore (including disbursements of Rs 6,256 crore under Refinance and Rs  12,759 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. 

 

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 newer infrastructure projects. 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 30th September 2016, IIFCL has made cumulative net sanctions of over Rs 17,700 Crore in 66 projects and has disbursed over Rs 12,700 Crore. 

Credit Enhancement Scheme 

Under the Credit Enhancement Scheme, IIFCL provides its 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 Project Bonds.  

Credit enhancement enables channelization of long term funds from investors like insurance and pension funds in such bonds. Asian Development Bank (ADB) is providing backstop guarantee facility to IIFCL for up to 50% of IIFCL’s underlying risk. 

 

 

            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 30th September 2016, IIFCL has 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 Indian companies implementing infrastructure projects in the country. Till 30th September 2016, IIFC (UK) has made cumulative disbursements of over USD 1.89 billion.  
 
IIFCL Projects Ltd (IPL): IPL, a 100% 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 100% subsidiary 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. On full subscription, the scheme achieved the distinction of being the first IDF Mutual Fund in the country 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, with one focused on infrastructure sectors with a fund size of up to Rs 1,500 crore and the other focused on Green initiative (Solar and wind energy, waste-to-energy, water and sanitation etc.) with a fund size of upto Rs 1,000 crore.
 

Sources of Funding

 

 

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

Domestic
 
IIFCL raises debt (both short-term and long-term) from the market through various suitable instruments created for the purpose.  As on 30th Sept, the company has outstanding long term liabilities of 31,015 Crore. 
 
International
 
IIFCL has established strong relationships with bilateral and multilateral institutions like ADB, World Bank, KfW and European Investment Bank  and has committed lines of long-term low-cost 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 low-cost 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 2013
FY Ended Mar 2014
 
FY Ended Mar 2015
 
FY Ended Mar 2016
Total Assets
35,207
38,756
39,064
42,274
Net Worth (as on 31stMarch  of FY)
4,858
5,782
6,796
7,265
Net Profit
1,047
521
753
468
Infrastructure Loans
24,152
23,881
26,995
31,612
 
 
Sector-Wise Exposure of IIFCL
 
Cumulative Gross Sanctions under Direct Lending (upto 30th September 2016)
 
                                        Figures in Rs Crore
Sector
No. of Projects
Project Cost
Amount Sanctioned
Road
216
 2,35,838
                   32,049
Power
123
 3,14,968
                            29,586
Airport
2
                25,801
                              2,150
Port
15
                   17,374
                              2,312
Urban Infra
12
            47,365
                     3,658
Railway
3
              3,194
                        639
PMDO*
38
              8,602
                        259
Telecom
1
              3,750
                        250
Total
410
 6,56,891 
            70,903
 
Sector-wise Cumulative Disbursement (upto30thSeptember 2016)
 
                       Figures in Rs Crore
Sector
No. of Projects
Project Cost
Amount disbursed
Road 
169
 176,557
 15,906
Power 
73
 192,498
 13,907
Airport 
2
 25,801
 846
Port 
8
 7,823
 663
Urban Infrastructure 
6
 1,504
 253
Railways
0
 -  
 -  
PMDO
27
 4,744
 151
Telecom
1
 3,750
 248
Sub Total
286
 412,677
 31,974
Refinance
 
 
 6,256 
Takeout Finance
51
 88,285
 12,759
Grand Total
337
 500,962
 50,989