IIFL Finance raised $175 million in June from HSBC, Union Bank and BoB

IIFL Finance on Monday announced that it raised $175 million in June through external commercial borrowing (ECB) from HSBC Bank, Union Bank (Sydney), and Bank of Baroda. With a borrowing of $100 million in March, the total borrowing in 2023-24 (FY24) so far has reached $275 million.

The retail-focused non-banking financial corporation (NBFC) has raised $75 million from HSBC, $50 million from Union Bank (Sydney), and $50 million from Bank of Baroda (IFSC unit)," the company said in a press release.

The funds were raised at a secured overnight financing rate (SOFR) plus 200 basis points offering competitive sources of funds to the rapidly growing NBFC.

"These funds are long-term in nature and will help us further strengthen our ALM position and support our continued growth across our core businesses. This also helps in diversifying our borrowing sources and lower our overall borrowing costs," said Kapish Jain, Group chief financial officer (CFO), IIFL Finance Limited.

The company is one of the biggest NBFCs in the country providing loans for homes, gold, and microfinance, among others. As of March 31, its total assets under management (AUM) stood at Rs 64,638 crore.

In FY23, the company reported a profit after tax of Rs 1,607.5 crore, up 35 per cent on-year with a return on equity of 19.9 per cent.

In June this year, the NBFC's secured retail public bonds issue was oversubscribed 1.5 times as it raised Rs 452 crores offering interest rates between 8.35 per cent and nine per cent for different payment schedules and tenors varying from 24 months to 60 months.

In April, IIFL Finance repaid $400 million, along with interest, it had raised through a maiden dollar bond issue in February 2020.