IIFL to raise 1k cr via NCDs

Hyderabad: Non-banking financial company (NBFC) IIFL Finance Ltd on 6 December launched its public issue of secured non-convertible debentures (NCDs) to raise up to Rs 1,000 crore.

The Fairfax-backed IIFL Finance will issue secured redeemable non-convertible debentures (NCDs), aggregating to 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 IIFL bonds offer highest effective yield of 9 per cent per annum for tenor of 60 months. The NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on annually and at maturity basis.

Kapish Jain, CFO, IIFL Finance, said: "Through a strong physical presence of over 3,600 branches across India and a well-diversified retail portfolio, IIFL Finance caters to the credit need of underserved population. The funds raised will be used to meet credit need of more such customers and accelerate our digital process transformation to enable a frictionless experience."

He added: "IIFL has an impeccable track record of more than 25 years and all the bond issues and the debt obligations have always been paid on time."

The credit rating has been AA/Stable by Crisil, 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.

The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Equirus Capital Private Limited. The NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited (NSE), to provide liquidity to investors. The IIFL Bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The public issue opens on January 6, 2023 and closes on January 18, 2023, with an option of early closure.