IIFL Finance to raise Rs 1500 cr via NCDs

IIFL Finance, retail focused NBFC, has announced to issue secured redeemable non-convertible debentures (NCDs), aggregating to Rs300 crore, with a green-shoe option to retain over-subscription of up to Rs1200 crore (aggregating to a total of Rs1,500 crore), for the purpose of business growth and capital augmentation here on Friday. The bonds will offer an interest rate up to nine per cent for tenor of 24 months, 36 months and 60 months. The Bonds will be issued at face value of Rs1,000 and the minimum application size is Rs10,000 across all categories. The public issue opened on Friday for public and will closes on June 22, with an option of early closure. The allotment will be made on first come first served basis.

Talking with the Bizz Buzz on the sidelines of the event, Sreekant Rameela, vice-president, IIFL, said: “We are very optimistic on the issue right now. If we see the RBI has been stabilizing interest rates and the inflation has touched all time low in the country. We don’t see any further rise in interest rates and this is the best time to put money in NCDs, where customers can gain better than from any other secured investments. Majority of the proceeds under the issue will be used in expansion of housing finance, gold loans and a few to micro finance in digital loans catering to the needs of retail customers. IIFL NCD issue is the best investment for the investors who are looking for safe returns in the next 5 years.”