IIFL NCD issue begins; offers 10% interest

Hyderabad: IIFL Finance, non-banking finance company, announced issue of the Non-Convertible Debentures (NCDs) from March 3 to 23, 2021. The NCDs will be offered with interest up to 10.03 per cent per annum for 87 months.

The NCDs are available in several options - monthly, annual, and at maturity. The offering has a high yield and double the interest rate offered by bank fixed deposit, liquid funds etc.

The company aims to raise a minimum of Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore).

The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Equirus Capital Private Limited. The NCDs are listed on the BSE and NSE. The IIFL Bonds would be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The allotment will be made on first come first served basis. IIFL finance has a credit rating of AA by Crisil and AA+ by Brickwork.

"The funds raised will help IIFL Finance to meet credit needs of underserved population who are primarily our customers. Through the crisis, credit rating of IIFL Finance has been reaffirmed by agencies, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk," said Sreekant Ramela, Vice President, IIFL.