IIFL Finance's Bonds Issue offers up to 9% yield to raise Rs 1500 crore

IIFL Finance, one of India’s largest Non-Banking Financial Companies, will open a public issue of secured bonds on June 9, 2023 to raise up to Rs. 1,500 crores for business growth and capital augmentation. The bonds offer up to 9% yield and high degree of safety. The NCDs are available in tenors of 24 months, 36 months and 60
months. The credit rating has been AA/Stable by CRISIL Ratings and AA/Stable by ICRA, which indicates that
the instruments are considered to have a high degree of safety for timely servicing of financial obligations and
carry very low credit risk. 

In Q4 FY23, Moody’s upgraded IIFL Finance’s rating from B2 to B1 (stable).
S. Hariharan, Director, IIFL said, “IIFL Finance through a strong physical presence of over 4000 branches across India and a well-diversified retail portfolio caters to the credit needs 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.” IIFL Finance is one of India’s largest retail-focused financial services companies, with a loan asset under management of Rs 64,638 crore as on March 31, 2023. 

It has consistently maintained low levels of NPAs and is focused on good quality of assets with Gross NPA of 1.8% and Net NPA of 1.1%. In FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore, up 35% on year with a robust return on equity of 19.9%.
The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited, Equirus Capital Private Limited and Trust Investment Advisors Private Limited. The public issue opens on June 09, 2023 and closes on June 22, 2023, with an option of early closure. The allotment will be made on first come first served basis.