The proposed fundraise is for business growth and capital augmentation.
One of India’s leading non-banking finance company, India Infoline Finance Limited (IIFL) will open a public issue of secured bonds on September 27, 2021 to raise up to Rs 1,000 crore to strengthen business growth and capital augmentation.
The bonds offer up to 8.75 percent yield.
Fairfax-backed IIFL is going to issue secured redeemable non-convertible debentures (NCFs) 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.
IIFL in a release said, “The IIFL bonds 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. 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.”
Rajesh Rajak, CFO, IIFL Finance said, “Through a strong physical presence of over 2500 branches across India and a well-diversified retail portfolio, IIFL Finance caters to the credit need of underserved population. The funds raised will be used to meet credit need of more such customers and accelerate our digital process transformation to enable a frictionless experience.”
He added, “IIFL has an impeccable track record of more than 25 years and all the bond issues and the debt obligations have always been paid on time.”
IIFL Finance is a retail focused financial services companies and its assets under management is Rs 43,160 crore as on June 30, 2021. Further, 93 percent of its book is retail focused on small ticket loans.
It’s gross NPAs are at 2.21 percent and net NPAs at 1.02 percent.
IIFL said, “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 September 27, 2021 and closes on October 18, 2021, with an option of early closure. The allotment will be made on first come first served basis.”