IIFL Finance to raise Rs 1,000 crores via public bond

Hyderabad: IIFL Finance, a non-banking financial company and part of the IIFL Group on Monday said it launched public issue of bonds on August 6, 2019.

With the non-convertible debenture, IIFL looks to raise Rs 1,000 crore. A part of this to be utilised for further business expansion, which includes adding of 240 new branch offices across India in 2019.

IIFL Finance said it will issue bonds of up to Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore. The bonds would be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

For a tenor of 69 months, the interest rate on bonds is 10.50 per cent, per year while for the secured category and short tenor of 15 months, the interest rate is at 10 per cent. The public issue opened on Monday and will close on August 30, 2019.

Abhishek Shukla, Deputy Vice President, IIFL Finance, said: 'IIFL Finance has a diversified portfolio, wherein 85 per cent of the book is retail and 15 per cent is wholesale.

Moreover, the loan Assets under Management is about Rs 35,000 crore, with net NPA of 0.6 per cent, making IIFL the safest bet for investment.'

Shukla further informed that the funds raised will support in expanding their operation. At present, IIFL has a presence over 1,800 branches, which the NBFC plans to increase to 2,500 by 2020.

It plans to open 100 new branches in Telugu states this year.