IIFL Finance to raise up to Rs 1000 cr via public issue of NCDs

IIFL Finance will open a public issue of secured NCDs on 27 September 2021 to raise up to Rs 1000 crore for purpose of onward lending, financing, refinancing the existing indebtedness of the company (payment of interest and/or repayment/prepayment of principal of borrowings) and general corporate purposes. The secured NCDs offer up to 8.75% yield.

IIFL Finance will issue Secured Redeemable Non-convertible Debentures (Secured NCDs), aggregating to Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore.

The IIFL Secured NCDs offer highest effective yield of 8.75% per annum for tenor of 60 months. The company will also offer an incentive of 0.25% p.a. for existing bond or equity share holders of the company and existing NCD holders of IIFL Home Finance Limited. The NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on annually and at maturity basis.

The NCDs proposed to be issued have been rated CRISIL AA/Stable by CRISIL and BWRAA+/negative by Brickwork, 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.

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