IIFL Finance buys back $50 million of overseas bonds

IIFL Finance has bought back $50 million worth of overseas bonds at par, funded by a corresponding loan of the same amount from a global bank, which will reduce its cost of funds by approximately 225 basis points on this transaction.

IIFL Finance had raised $400 million through its maiden overseas bonds issue in February 2020 at an effective issue price of $998.75 per $1000 of face value, to fund its business growth. The Company had in the last two years bought back $26.3 million worth of bonds in various tranches, and launched a tender offer on 21 March 2022 to further buy back up to $50 million worth of bonds.

After this buyback, bonds of $323.7 million remain outstanding.

As on December 2021, IIFL Finance's free cash, equivalents and undrawn lines stood at Rs. 9,145 crore, adequate to meet not only all the near-term liabilities, but also to fund the future growth momentum. IIFL Finance's loan assets under management was Rs 46,780 crore at the end of December 2021, while the capital adequacy ratio stood at 25.4% and provision coverage ratio was at 133 percent. As on December 2021, about 94% of its loan book comprised of retail loans.

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