India Infrastructure Finance Company Ltd (IIFCL) aims to double its exposure to infrastructure investment trust (InvIT) to Rs 2,500 crore during the current financial year.
IIFCL invested Rs 975 crore in project bonds, including around Rs 324 crore of bonds in renewable energy InvIT during 2021-22.
"We are looking at all good AAA rated InvITs for investment on the debt side. Depending on the opportunities, InvIT exposure may cross Rs 2,500 crore by the end of the current financial year," IIFCL managing director P R Jaishankar told PTI.
IIFCL would continue its exposure in debt side to further strengthen balance sheet and improve its asset quality.
Last year, subsequent to clarification by the Reserve Bank of India, IIFCL initiated subscribing to infrastructure project bonds and lending to InvITs.
IIFCL on Tuesday inked an agreement with Indian Railway Finance Corporation (IRFC) for financing railways infrastructure.
The Memorandum of Understanding (MoU) is aimed at strengthening cooperation in financing railway infrastructure projects with forward and backward linkages to the Indian Railways sector.
Under the MoU, IRFC and IIFCL will amplify each other's capabilities, enabling them to jointly leverage the financing opportunities for viable infrastructure projects.
IIFCL has participated in 650 projects with a total outlay of over Rs 11.30 lakh crore, providing financial assistance to over 28 per cent of PPP projects in the country till March 2022.
The partnership between IRFC and IIFCL would help towards realising Prime Minister Narendra Modi's vision of making India a USD 5-trillion economy by 2025.
In 2019, the prime minister envisioned to make India a USD 5-trillion economy and global powerhouse by 2024-25.