IIFL to raise Rs 1,500 cr in bonds to fuel growth
The public issue of the IIFL NCDs will open on Friday and has a base offer of Rs 300 crore. However, the company has a green shoe option to retain an over-subscription of up to Rs 1,200 crore
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KOLKATA: Leading non-bank lender IIFL Finance is raising up to Rs 1,500 crore through a public issue of secured redeemable non-convertible debentures (NCDs) to fuel credit growth and debt management, a company official said.
The public issue of the IIFL NCDs will open on Friday and has a base offer of Rs 300 crore. However, the company has a green shoe option to retain an over-subscription of up to Rs 1,200 crore. With the RBI pausing its rate hike cycle, IIFL remains optimistic about raising the entire Rs 1,500 crore in this tranche of issues with an attractive 9 per cent coupon rate. “We expect to raise the full subscription amount in this issue due to the attractive coupon rates. Credit growth is robust after the Covid-19 pandemic,” IIFL Director Gaurav Mishra said.
The IIFL bonds offer a coupon rate starting at 8.35 per cent for 24 months and the highest effective yield of 9 per cent per annum for a tenor of 60 months. IIFL has kept the highest coupon rate at 9 per cent, the same as its last NCD issue in January, in which it announced raising up to Rs 1,000 crore.
The NCDs are available in tenors of 24 months, 36 months and 60 months. The face value of the NCDs is Rs 1,000 each and the minimum application size is Rs 10,000. The NCDs will be listed on the BSE and NSE.
The credit rating has been AA by CRISIL Ratings and ICRA. In Q4 FY23, Moody’s upgraded IIFL Finance’s rating from B2 to B1 (stable). IIFL Finance, through a strong physical presence of over 4,000 branches across India and a well-diversified retail portfolio, caters to the credit needs of underserved populations.