IIFL Finance To Raise Up To Rs. 1,500 Cr Via NCDs: Issue To Open On June 9

On June 9, 2023, IIFL Finance, one of India's largest non-banking financial companies, will launch a public bond offering to raise up to Rs. 1,500 crores for capital expansion and business growth. The bonds offer up to 9% yield and high degree of safety. With a green-shoe option to keep up to 1200 crore in over-subscription (for a total of 1,500 crore), IIFL Finance will issue secured redeemable non-convertible debentures (NCDs) totaling Rs 300 crore.

For a tenor of 60 months, the IIFL bonds offer the highest effective yield of 9% annually. The NCD is offered in tenors of 24 months, 36 months and 60 months. There are three options for interest payment frequency: annual, at maturity, and monthly for a 60-month term. IIFL Bonds has been rated AA/Stable by CRISIL Ratings and AA/Stable by ICRA which indicated high degree of safety and low credit risk. In Q4 FY23, Moody's upgraded IIFL Finance's rating from B2 to B1 (stable).

IIFL Finance's Group CFO Mr. Kapish Jain said, "IIFL Finance through a strong physical presence of over 4000 branches across India and a well-diversified retail portfolio caters to the credit needs 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." In April, IIFL Finance duly repaid $400 million worth of dollar bonds, raised through medium-term notes in February 2020.

Edelweiss Financial Services Limited, IIFL Securities Limited, Equirus Capital Private Limited, and Trust Investment Advisors Private Limited are the issue's lead managers. The NCDs would be listed on the BSE Limited and National Stock Exchange of India Limited (NSE). The face value of the IIFL Bonds is Rs 1,000, and the minimum application amount is Rs 10,000 for all categories. The public issue opens on June 09, 2023 and closes on June 22, 2023, with an option of early closure. The allotment will be made on first come first served basis, according to IIFL Finance.

As of March 31, 2023, the loan assets managed by IIFL Finance were worth Rs 64,638 crore were as Gross NPA of 1.8% and Net NPA of 1.1%. With a healthy return on equity of 19.9%, IIFL Finance recorded an FY23 profit after tax of Rs 1,607.5 crore, up 35% from the previous year.