IIFL Finance raises $325 million via issuance of international bond

Non-bank lender IIFL Finance on Friday said it has raised $ 325 million through issuance of international bond.

The city-based company will pay a coupon rate of 8.75 per cent for the bonds which are for a tenor of three-and-a-half years, according to an official statement.

The lender had faced RBI restrictions on its gold financing business last year, which got lifted in September 2024.

Non-bank lenders are increasingly tapping into the global bond markets as they look for funding sources beyond banks. IIFL's move came days after Tata Capital's $ 400-million borrowing from overseas investors.

The IIFL statement said proceeds from the latest issuance will be deployed for on-lending which will support the company's growth.

"This issuance not only allows us to diversify our funding sources but also reinforces our commitment to delivering value to stakeholders while adhering to prudent financial practices," it said.

The bond offering, rated B+ by both S&P and Fitch with a stable outlook, garnered the peak demand of $ 1.15 billion with the initial coupon rate guidance of 9 per cent.

The final order book stood at over $ 730 million, with allocations of 20 per cent in Asia, 25 per cent in Europe, the Middle East, and Africa, and 54 per cent in the US, the statement said, adding, 95 per cent of the issuance was subscribed by fund managers while private banks and insurance companies made up for the rest.