IIFL Finance's Rs 2,000-crore bond issue opens tomorrow

IIFL FINANCE

IIFL Finance is set to raise up to Rs 2,000 crore through a public issue of secured non-convertible debentures (NCDs) starting February 17, the lender’s second such push into the debt market this fiscal.

IIFL’s biggest ever bond issue includes a Rs 500 crore base and a Rs 1,500 crore green-shoe option, the company said on February 16.

The first tranche of the issue is set to have 9 series of bonds maturing in two years, three years and five years, with annual, monthly and cumulative interest payment options. The bonds will are proposed to be listed on both the exchanges.

It will pay an interest ranging from 8.7 percent-9 percent per annum. The funds will be used for lending, refinancing of debt and for general corporate purposes, IIFL Finance said.

The first tranche of bonds will open February 17 and will close on March 4, the company added.

Trust Investment Private Advisors, Nuvama Wealth Management and IIFL Capital Services are the managers to the issue.

“The secured, CRISIL AA/Stable rated NCDs provide investors predictable returns with flexibility, backed by a well-capitalised balance sheet and prudent underwriting,” IIFL Finance Managing Director Nirmal Jain said.

In Q3, the non-banking finance company reported loan assets under management (AUM) of Rs 98,336 crore on a consolidated basis, up from Rs 71,410 crore in the year-ago period. It posted a profit after tax of Rs 501.35 crore, a multi-fold jump from previous year.