Bank of Baroda, IIFCL Sign MoU to Strengthen Infra Financing via Joint Lending and Loan Syndication
By Axel Miller | 21 Jan 2026
Bank of Baroda (BoB) on Wednesday announced the signing of a Memorandum of Understanding (MoU) with India Infrastructure Finance Company Ltd (IIFCL) to facilitate joint lending and loan syndication for viable infrastructure projects across India.
The tie-up is aimed at expanding the availability of long-tenure capital for large projects in sectors such as transport, energy and urban infrastructure, while allowing both institutions to share project risk, appraisal capabilities and financing exposure.
BoB said the arrangement leverages its nationwide banking network alongside IIFCL’s specialised expertise in long-tenure infrastructure project finance, a segment where large funding requirements and extended project durations often strain traditional lending models.
Focus on green finance and inclusive development
Palash Srivastava, Deputy Managing Director of IIFCL (holding additional charge as Managing Director), said the institution is working to enable long-term and sustainable financing.
“Our focus remains on green finance, MSMEs and rural infrastructure to foster inclusive and resilient economic growth,” Srivastava said.
On behalf of Bank of Baroda, Lalit Tyagi, Executive Director, said the partnership positions the bank to offer innovative financing structures as India’s infrastructure pipeline continues to grow.
BoB board to meet on Jan 30 to consider infra bond issuance
The announcement also comes ahead of Bank of Baroda’s board meeting scheduled for January 30, 2026, where the lender is expected to consider a proposal for the issuance of long-term bonds for infrastructure and affordable housing financing.
Such issuances are increasingly used by banks to raise longer-tenure funds that align better with the duration of infrastructure lending.
Why This Matters
This MoU matters because it signals how India’s infrastructure financing ecosystem is evolving:
- Large projects need longer money
Traditional banking deposits are largely short-term, while infrastructure loans are long-term. Joint lending and syndication help bridge that mismatch. - Risk-sharing is becoming essential
Co-financing allows banks and specialised lenders like IIFCL to share exposure and improve due diligence, particularly in complex projects. - Green and rural infra lending is gaining momentum
With growing policy emphasis on renewables, EVs, and rural connectivity, lenders are building frameworks to scale financing into ESG-aligned sectors.
Summary
Bank of Baroda and IIFCL signed an MoU on Jan 21, 2026 to enable joint lending and loan syndication for infrastructure projects across India. The partnership is expected to support long-tenure funding needs, including green and rural infrastructure. The development comes ahead of BoB’s Jan 30 board meeting to consider raising long-term bonds for infrastructure and affordable housing.
FAQs
Q1: What is the objective of the BoB–IIFCL partnership?
To enable joint lending and loan syndication for infrastructure projects, helping finance large deals beyond single-lender exposure limits.
Q2: Why does the MoU mention green finance?
Because infrastructure funding is increasingly shifting toward ESG-aligned sectors such as renewables, clean mobility, and sustainable urban development.
Q3: Does this affect existing Bank of Baroda customers?
Not directly. It strengthens BoB’s corporate infrastructure financing capability and expands project lending capacity.
Q4: How is this linked to BoB’s Jan 30 board meeting?
BoB’s board is scheduled to consider raising long-term bonds for infrastructure and affordable housing — a funding tool well-suited for long-tenure project loans.
