This NBFC offers up to 9% interest per year on its debt securities
IIFL Finance plans to raise up to Rs 1,000 crore in the market for business growth and capital increase. The issue includes a base size of Rs 100 crore, with a green shoe option to keep an oversubscription up to Rs 900 crore.
IIFL bonds offer the highest effective yield of 8.75% per annum for a term of 60 months. The company said it would also offer a 0.25% per annum incentive for existing shareholders of the company’s bonds or shares, raising their yield to 9%.
The NCD will be available for terms of 24 months, 36 months and 60 months. The interest payment frequency is available on a monthly, annual and maturity basis for the 60-month term, while for other terms it is available on an annual basis and at maturity.
The bonds would be issued at a face value of Rs 1,000 and the minimum demand size is Rs 10,000 in all categories. The public offering will close on October 18, with an early closing option. Allocation will be on a first come, first served basis.
“IIFL Finance meets the credit needs of the underserved population. The funds raised will be used to meet the credit needs of more of these customers and accelerate the transformation of our digital processes to enable a frictionless experience. The IIFR has an impeccable track record of over 25 years and all bond issues and debt securities have always been paid on time, ”said Rajesh Rajak, CFO of IIFL Finance.
The rating agencies Crisil rated the issue AA / Stable while Brickwork AA + / negative.
IIFL Finance’s loan assets under management stood at Rs 43,160 crore as of June 30, 2021. Up to 93% of its portfolio is for retail, which includes low-cost loans. The gross NPA stands at 2.21% of the assets and the net NPA at 1.02%. As of June 30, about 86% of the company’s consolidated loan portfolio was backed by adequate collateral, further mitigating risk, he said.
The main managers of the issue are Edelweiss Financial Services, IIFL Securities and Equirus Capital.
The NCDs will be listed on the ESB and the National Stock Exchange of India (NSE), in order to provide liquidity to investors.