IIFL Finance raises $175 million from HSBC, Union Bank, and Bank of Baroda
IIFL Finance, one of India's largest non-banking finance companies, has raised $175 million from HSBC, Union Bank, and Bank of Baroda through external commercial borrowing. They also raised $100 million in March.
One of India's largest non-banking finance companies, IIFL Finance on Monday said that it has raised $175 million from HSBC, Union Bank, and Bank of Baroda through the external commercial borrowing (ECB) route in June 2023, the company said in an exchange filing.
In addition, IIF Finance also raised $100 million through the ECB route in March 2023. It includes $50 million in long-term funding from Export Development Canada and the co-financing of $50 million from Deutsche Bank (Singapore).
In the exchange filing, Kapish Jain, Group CFO, IIFL Finance said, “These funds are long-term in nature and will help us further strengthen our ALM position and support our continuous growth across our core businesses. This also helps in diversifying our borrowing sources and lower our overall borrowing costs.”
In June this year, IIFL Finance Ltd opened a public issue of secured bonds to raise ₹1,500 crore. The firm further said it will raise funds via secured non-convertible debentures (NCDs).
For a tenure of 60 months, the bonds offer an effective yield of 9 percent per annum and the NCD is available in tenures of 24 months, 36 months, and 60 months. Among others, the firm said the frequency of interest payment is available on an annual, at-maturity basis and a monthly option for 60-month tenure.
Rating agency Moody's Investors Service on 6 April also upgraded IIFL Finance Limited's long-term corporate family rating to B1 from B2.
Apart from this, the rating agency also upgraded IIFL Finance's foreign currency senior secured debt rating to B1 from B2, and foreign and local currency senior secured medium-term note program ratings to (P)B1 from (P)B2.
The following development are being driven by strong momentum from the company's asset-light model that has improved its profitability, capital and funding, said Moody's, adding, the rating outlook remains stable.
Moody in its report said that IIFL Finance's off-balance sheet loans rose to 37% of its total assets under management (AUM) as of the end of December 2022 from 21% as of the end of March 2019 (fiscal 2019) and this helped improved its funding, profitability and capital.
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Business NewsCompaniesNewsIIFL Finance raises $175 million from HSBC, Union Bank, and Bank of Baroda
First Published:3 Jul 2023, 03:08 PM IST
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