Biznextindia : IIFL Finance Limited (IIFL/IIFL Finance) has announced that it will open a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) on January 6, 2023, to raise up to Rs. 1000 crore for the purpose of onward lending, financing, refinancing the existing indebtedness of IIFL Finance Limited (payment of the interest and/or repayment /prepayment of principal of borrowings) and General Corporate Purposes.
The NCDs offer up to 9.00% yield. IIFL Finance will issue secured redeemable NCDs, aggregating to Rs. 1,000 Million, with a green-shoe option up to Rs. 9,000 Million amounting to Rs. 10,000 Million. The IIFL NCDs offer effective yield of up to 9.00% per annum for tenor of 60 months. The NCDs are available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and cumulative basis for 60 months tenor, while for 24 months and 36 months it is available on annual and cumulative basis.
The credit rating has been “CRISIL AA/Stable” by CRISIL and “[ICRA] 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. IIFL Finance’s consolidated Loan Assets under Management is Rs. 553,020.80 Million as on September 30, 2022. IIFL Finance has consistently maintained low level of NPAs over the years of operations and continues to focus on good quality of assets with gross NPA of 2.42% and Net NPA of 1.22%. Additionally, as on September 30, 2022, 84.30% of the company’s consolidated loan book is secured with adequate collaterals which helps to mitigate risks further.
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 NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited. The IIFL NCDs would be issued at face value of Rs. 1,000 and the minimum application size is Rs. 10,000 (10 NCD) and in multiple of Rs. 1,000 (1 NCD) thereafter, across all categories. The public issue opens on January 6, 2023 and closes on January 18, 2023, with an option of early closure.