IIFL Finance to launch its largest public bond issue worth ₹2,000 crore amid plans to diversify funding: Report

IIFL Finance plans to launch its largest-ever public bond issue of ₹2,000 crore ($220.60 million), its second such offering this financial year, according to a Reuters report citing a company official and people aware of the development.

Nirmal Jain, managing director of IIFL Finance, confirmed the details of the public bond issue and stated that the company aims to diversify its funding sources and expects demand for public bonds to grow, it added.

The Fairfax-backed non-banking finance company will issue bonds maturing in two, three, and five years, with options for annual, monthly, and end-of-term interest payments, the report said.

The company will issue two-year bonds with an annual coupon rate of 8.70%, three-year bonds at 8.85%, and five-year bonds offering a 9% coupon.

These bonds have received an AA rating from Crisil Ratings and Brickwork Ratings.

IIFL Capital Services, Nuvama Wealth Management, and Trust Investment Advisors are the lead managers for the issue, which is expected to open for subscription next week, the report said.

"The proceeds from the fundraise will be utilised for onward lending, refinancing of existing borrowings and general corporate purposes," the report quoted a person aware of the development

In April 2025, the company raised ₹5 billion through a similar issue, it added.

Livemint could not independently verify the report.

Public bonds have been gaining momentum in India, with Indian companies raising approximately ₹71 billion through public bond issues in the first nine months of this financial year, according to the Securities and Exchange Board of India.

IIFL Q3 results

IIFL Finance, an NBFC that provides gold and business loans, last month announced its results for the October to December quarter. The company said its net profit in the quarter under review grew multifold to ₹501 crore from the year-ago period, PTI reported.

In the corresponding quarter of the previous year, IIFL's profit stood at ₹82 crore.

IIFL Finance reported that its gold loan assets under management (AUM) nearly tripled to ₹43,432 crore, reflecting strong growth driven by healthy increases in tonnage and consistent asset quality, the report said.

Home loan AUM rose by 5% year-on-year to ₹31,893 crore, MSME loan AUM rose by 17% to ₹10,081 crore, while microfinance loan AUM fell by 19% to ₹8,360 crore during the third quarter ending 31 December 2025.

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