IIFCL plans $1 billion overseas loan, also eyes $400 million ADB funding to back infrastructure push

State-owned India Infrastructure Finance Company Ltd (IIFCL) is planning to raise $1 billion from overseas investors in what could become its largest foreign-currency loan, while also holding talks with the Asian Development Bank (ADB) for a separate $400 million loan, a senior company executive told Reuters.State-owned India Infrastructure Finance Company Ltd (IIFCL) is planning to raise $1 billion from overseas investors in what could become its largest foreign-currency loan, while also holding talks with the Asian Development Bank (ADB) for a separate $400 million loan, a senior company executive told Reuters.The fundraising comes after the Reserve Bank of India (RBI) introduced a series of measures to encourage dollar inflows and support the rupee, including allowing state-run firms and banks to raise foreign-currency funds to hedge forex exposure at subsidised rates.$1 billion loan plannedThe proposed $1 billion loan will have a 15-year tenure and carry an interest rate of below 7%, while discussions with ADB are centred on a separate 20-year loan of about $400 million, IIFCL Deputy Managing Director Palash Srivastava told Reuters.Srivastava said IIFCL doubled the size of the proposed 15-year borrowing from an initial $500 million after the RBI announced the subsidised borrowing facility.Reuters had earlier reported that three Indian development finance institutions planned to raise at least $1.5 billion through foreign-currency bank loans under the RBI's new framework.Dollar bond also on the cardsApart from bank borrowings, IIFCL is also evaluating its debut dollar bond issue of around $100 million by the end of the year."The bond will likely be in the three- to five-year tenor," Srivastava told Reuters.RBI measures spur overseas fundraisingDollar fundraising by Indian financial institutions has picked up after the RBI opened its subsidised foreign borrowing window.HDFC Bank has raised $750 million through a five-year bond, while Axis Bank priced an $800 million dual-tranche dollar bond. State-run Power Finance Corporation has also raised $300 million through dollar bonds.State Bank of India and Bank of Baroda are also planning overseas fundraising, Reuters reported.