IIFL Finance to raise up to ₹1,500 crore via NCDs: Report
1 min read 06 Jun 2023, 10:20 PM ISTThe Fairfax-backed firm said the bonds offer up to 9 percent yield and a high degree of safety, adding it is being done for the purpose of business growth and capital augmentation
PremiumIIFL Finance Ltd on 6 June announced that it will open a public issue of secured bonds on 9 June to raise ₹1,500 crore. The firm further said it will raise funds via secured non-convertible debentures (NCDs).
Elaborating more details, the Fairfax-backed firm said the bonds offer up to 9 percent yield and a high degree of safety, adding it is being done for business growth and capital augmentation, reported CNBC-TV18.
The firm will issue secured redeemable NCDs, aggregating to ₹300 crore, including a green-shoe option to retain over-subscription of up to ₹1,200 crore (aggregating to a total of ₹1,500 crore), it said.
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.
The face valve of IIFL bonds will be ₹1,000 and the minimum application size is ₹10,000 across all categories. Sharing other details, the firm said the public issue opens on 9 June 2023 and closes on 22 June 2023. Also, the allotment will be made on a first-come-first-served basis.
Edelweiss Financial Services Limited, IIFL Securities Ltd, Equirus Capital Private Ltd, and Trust Investment Advisors Private Ltd will be the lead managers to the issue, while the NCDs will be listed on the BSE Ltd and NSE to provide liquidity to investors.
the funds raised will be used to meet the credit needs of customers and accelerate the firm's digital process transformation to enable a frictionless experience, said IIFL Finance's group CFO Kapish Jain.
