IIFL Finance to raise Rs 1,000 cr through bond issuance for business growth

IIFL Finance on Tuesday will come up with public issue of bonds to raise up to Rs 1,000 crore to fund business growth of the company.

The non-convertible debentures (NCDs) will offer up to 10.5 per cent yield.

The UK-based CDC Group backed IIFL Finance will issue secured and unsecured redeemable NCDs, aggregating up 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 company said here at a conference.

The bonds will offer the highest yield of 10.50 per cent per annum for tenor of 69 months. It also offers 10 per cent per annum for short tenor of 15 months for the secured category.

The bonds will offer monthly, quarterly and annual payment frequency along with zero coupon bonds. The other tenor offered is 39 months for secured category.

"Through our strong physical presence of 1,947 branches across India and a well-diversified portfolio, we are able to meet the credit requirement of various segments of underserved population. The funds raised will help us in expanding our operation in more such areas," said Monu Ratra, CEO, IIFL Home Finance.

Company's loan assets under management (AUM) is about Rs 35,000 crore. About 85 of the book is retail - which is focused on small ticket loans.

IIFL Finance said corporates and trusts, which are paying only MAT, can also invest in the bonds, especially 15-month tenor, where the rate is very attractive.

The debt instruments of the company have been rated as AA/stable by Crisil.

The gross non-performing assets (NPAs) of the company stood at 1.9 per cent and net NPA of 0.6 per cent as on date.

In fiscal ended March 2019, company's profit after tax grew by 55 per cent to Rs 717.4 crore.

The lead managers to the issue are Edelweiss Financial Services Ltd, IIFL Securities Limited, ICICI Securities, and Trust Investment Advisors Private Ltd.

The NCDs will be listed on the BSE and NSE.

The bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

The public issue opens on August 6, 2019 and closes on August 30, 2019, with an option of early closure.

The allotment will be made on first come first served basis, IIFL Finance said.