IIFL Finance plans to raise Rs 1,000 crore from the market for business growth and capital addition. The issue covers a base size of Rs 100 crore, which includes a green-shoe option to maintain oversubscription up to Rs 900 crore.
IIFL bonds offer the highest effective yield of 8.75 per cent per annum for a tenure of 60 months. The company said it would also offer an incentive of 0.25 per cent per annum to existing bond or equity shareholders of the company, bringing their yield to 9 per cent.
The NCDs will be available in tenures of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, yearly and maturity basis for a period of 60 months, while for other tenors, it is available on an annual and maturity basis.
The bonds will be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The public issue will close on October 18 with an early closure option. Allotment will be done on first come first serve basis.
“IIFL Finance caters to the credit needs of the underprivileged population. The funds raised will be used to accelerate our digital process transformation to meet the credit needs of more such customers and enable a frictionless experience. IIFL has an impeccable track record of over 25 years and all bond issues and debt obligations have always been paid on time,” said Rajesh Rajak, CFO, IIFL Finance.
Rating agency CRISIL has rated the issue as AA/Stable while Brickwork AA+/Negative.
The debt assets under management of IIFL Finance stood at Rs 43,160 crore as of June 30, 2021. Its 93% book is retail, which includes small-ticket loans. Gross NPAs were 2.21% of assets and Net NPAs were 1.02%. As of June 30, about 86% of the consolidated loan book of the company was secured with adequate collateral, which helps to further mitigate the risks, it said.
The lead managers to the issue are Edelweiss Financial Services, IIFL Securities and Equirus Capital.
The NCDs will be listed on BSE and National Stock Exchange of India (NSE) to provide liquidity to the investors.