India Infoline Finance to raise Rs 50 bn via debentures for long-term funds

ICRA flags high dependence on commercial paper

India Infoline Finance Ltd (IIFL), plans to issue non-convertible debentures (NCDs) worth Rs 50 billion to raise long-term funds. It has become crucial for finance companies to have a long tenor fund at hand to manage liquidity and also meet repayment obligations for short-term financial instruments.

Rating agency ICRA assigned “AA” stable rating for NCDs.

In its commentary on the IIFL, the rating agency said the group (IIFL) has a relatively higher reliance on short-term commercial papers (34 per cent as on June 30, 2018). The ability of the group to generate enough liquidity to refinance its short term borrowings