TFCI Sets Sights on Growth: Board Approves Ambitious Rs 10,000 Crore Fundraising Plan

Tourism Finance Corporation of India (TFCI), the top term-lending firm that specializes in the tourism and hospitality industries, has approved board for raising up to Rs 10,000 crore of resources. The strategic initiative is designed to enhance the lending capability of the company and further its growth strategy in wholesale as well as retail financing.

 

Key Highlights

 

The board of TFCI, at its recent meeting, sanctioned the raising of funds by a combination of financial instruments such as bonds, debentures, and bank and other financial institution loans.

 

The firm is aggressively pursuing both long-term and short-term funding options, an indication of its desire to diversify its borrowing spectrum and solidify its balance sheet.

 

TFCI’s leadership has indicated plans to aggressively expand its loan book, with a particular focus on retail lending, leveraging digital platforms and partnerships with fintech companies to reach new customer segments.

 

The fundraising will also support the establishment of an alternative investment fund, part of TFCI’s broader strategy to diversify offerings and tap into emerging credit opportunities in the household and micro-small enterprise sectors.

 

As of FY24 end, TFCI had reported strong financials with total borrowings standing at ₹983 crore and a strong capital adequacy ratio of over 58%, reflecting its strong financial health going into this key resource-raising effort.

 

The company recently announced a profit of ₹25 crore for the July-September quarter of the ongoing fiscal year, reflecting enhanced asset quality and an emphasis on long-term stability and growth.

 

This significant resource mobilization is expected to further cement TFCI’s role as a key financier in the tourism, hospitality, and allied sectors, while also enabling entry into new lending segments and supporting the company’s next phase of expansion.

 

Sources: Business Standard, Economic Times