IIFL Finance raises $100 mn from Export Development Canada, Deutsche Bank

IIFL Finance said the money will be used to pre-pay existing higher cost debt, which will help it save significantly on its borrowing costs. (Representative Image)

Non-banking financial company IIFL Finance on Thursday said it has secured USD 100 million (about Rs 819 crore) in long-term funding from Export Development Canada and Deutsche Bank.

The Fairfax-backed company said it has received USD 50 million each from Export Development Canada and Deutsche Bank, and this round is the second investment by the Canadian institution, which had invested USD 100 million in 2019.

The deal was structured by Deutsche Bank as the lead arranger, book runner and co-financier.

IIFL Finance, which had raised USD 400 million through its maiden dollar bond issue in February 2020, said the money will be used to pre-pay existing higher cost debt, which will help it save significantly on its borrowing costs.

Kapish Jain, group chief financial officer of IIFL Finance, said these funds are long-term in nature and will help us further strengthen our asset liability position and support our continued growth across our core businesses.

IIFL Finance is one of the largest retail-focused NBFCs with a loan book of Rs 57,941 crore as of December 2022.

Export Development Canada is a financial crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. Deutsche Bank is Germany's largest bank with a strong position in Europe and a significant presence in the Americas and Asia Pacific.