IIFL Finance to raise funds up to Rs 1,000 crore via public NCD issue

IIFL Finance said that it will open a public issue of secured redeemable non-convertible debentures (NCDs) on 6 January 2023, to raise up to Rs 1,000 crore.

The NBFC will issue secured redeemable NCDs, aggregating to Rs. 100 crore, with a green-shoe option of up to Rs 900 crore, amounting to Rs 1,000 crore.

The IIFL NCDs offer effective yield of up to 9.00% per annum for tenor of 60 months. The NCDs are available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and cumulative basis for 60 months tenor, while for 24 months and 36 months it is available on annual and cumulative basis.

The credit rating has been CRISIL AA/Stable by CRISIL and [ICRA] AA (stable) by ICRA, 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 NBFC said that the funds are being raised for the purpose of onward lending, financing, refinancing the existing indebtedness of IIFL Finance (payment of the interest and/or repayment /prepayment of principal of borrowings) and for general corporate purposes.

IIFL Finance's consolidated loan assets under management stood at Rs 55,302.08 crore as on 30 September 2022.

IIFL Finance is a systematically important non-deposit accepting non-banking financial company. Its offerings include home loans, gold loans, business loans including loans against property and medium and small enterprise financing, microfinance, construction and real estate finance and capital market finance; catering to both retail and corporate clients. Subsidiaries of the company are IIFL Home Finance, IIFL Samasta Finance (formerly known as Samasta Microfinance), IIHFL Sales and IIFL Open Fintech.

The company reported a 36.2% jump in consolidated net profit to Rs 397.07 crore on a 19.7% rise in total income to Rs 2,051.44 crore in Q2 FY23 over Q2 FY22.

The scrip fell 1.59% to currently trade at Rs 459 on the BSE.

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