This NBFC is offering up to 9% per annum interest on its debt papers
24 Sep 2021
NEW DELHI: The public issue of secured bonds of will open for subscription on September 27, Monday. The bonds will offer up to 9 per cent yield and a high degree of safety, said the company.
IIFL Finance plans to raise up to Rs 1,000 crore from the market for business growth and capital augmentation. The issue includes a base size of Rs 100 crore, with a green-shoe option to retain oversubscription of up to Rs 900 crore.
The IIFL bonds offer 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 for the existing bond or equity shareholders of the company, taking their yield to 9 per cent.
The NCD will be available in tenures of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and at maturity basis for the 60 months tenure, while for other tenures, it is available on annually and at maturity basis.
The bonds would be issued at 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 option of early closure. The allotment will be made on a first come first served basis.
“IIFL Finance caters to the credit needs of the underserved population. The funds raised will be used to meet credit needs of more such customers and accelerate our digital process transformation to enable a frictionless experience. IIFL has an impeccable track record of more than 25 years and all the bond issues and the debt obligations have always been paid on time,” said Rajesh Rajak, CFO, IIFL Finance.
Rating agencies Crisil has rated the issue AA/Stable while Brickwork AA+/negative.
IIFL Finance’s loan assets under management stood at Rs 43,160 crore as on June 30, 2021. As much as 93% of its book is retail, which comprises small-ticket loans. Gross NPA stood at 2.21% of assets and net NPA at 1.02%. As on June 30, about 86% of the company’s consolidated loan book was secured with adequate collateral, which helps mitigate risks further, it said.
The lead managers to the issue are Edelweiss Financial Services, IIFL Securities and Equirus Capital.
The NCDs will be listed on the BSE and National Stock Exchange of India (NSE), to provide liquidity to investors.