IIFCL to launch subsidiary for issuing asset-backed securities

11 Nov 2024 CW Team

India Infrastructure Finance Company (IIFCL) is planning to establish a subsidiary to issue asset-backed securities (ABS) or covered bonds to securitise its assets and preserve capital for future business expansion. IIFCL's Managing Director, PR Jaishankar, explained to PTI that the company was approaching the threshold for its asset size and loan book. He indicated that IIFCL might not seek substantial growth in these areas but could create a separate division dedicated to securitising its assets.

Jaishankar elaborated that the goal is to grow and generate new assets by leveraging existing ones, thereby reducing the need for additional liabilities. He emphasized that this approach would allow assets to generate further assets incrementally, helping reduce capital costs, improve profitability, and enhance asset quality and viability.

The plan, he noted, is to spin off a portion of their assets, maintaining a threshold while focusing more on increasing sanctions and disbursements rather than expanding the asset or loan book size. Jaishankar further mentioned the potential for a separate vertical to issue ABS, which could involve either pass-through or pay-through securities.

He discussed the possibility of issuing covered bonds, explaining that while covered bonds are recourse-backed, ABS is not, thus providing two potential structures. Jaishankar added that these details were still under development, but once finalised, the proposal would be presented to the board for approval.

In FY24, IIFCL reported a 44 per cent increase in standalone net profit to Rs 15.52 billion, driven by a rise in lending and a reduction in non-performing loans.

Infrastructure Transport

07 May 2026

IRCON Celebrates 50 Years of Infrastructure Excellence

IRCON International, a Navratna Central Public Sector Enterprise under the Ministry of Railways, celebrated its 50th Foundation Day at Bharat Mandapam, New Delhi. The Golden Jubilee event marked five decades of contribution to India’s railway and infrastructure development, while reaffirming the company’s commitment to nation-building through engineering excellence. The celebration was attended by senior officials from the Ministry of Railways, IRCON’s leadership, industry stakeholders and employees. The event featured the launch of a commemorative coffee table book on IRCON’s 50-year ..

BorgWarner Wins Three Electric Motor Orders in Asia

BorgWarner has secured three electric motor business awards with Asian original equipment manufacturers across China and South Korea, strengthening its electrification portfolio across battery electric and hybrid vehicle applications. Production under the new programmes is expected to begin in phases from June 2026 to September 2027. In South Korea, BorgWarner will supply a stator assembly for a new electric B-segment SUV programme. The award builds on its earlier supply of hairpin eMotor technology for the customer’s multi-purpose vehicle platform, reinforcing its position as a trusted supp..

AIDO Showcases Door Systems At Aluminium Expo

AIDO, an endorsed brand of dormakaba, marked its participation at Aluminium Expo 2026, held from 1–3 May at Calicut Trade Centre, Calicut. Organised by the Aluminium Dealer Forum, the event saw AIDO showcase its SLYNK Profiled Door System and advanced Digital Door Lock range. The SLYNK Profiled Door System is designed for seamless spatial transitions, minimal aesthetics, smooth operation and optimised space use. It supports wooden doors, framed glass doors and frameless glass doors, with configurations including invisible sliding, pocket sliding, telescopic sliding, synchro sliding and singl..