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Non-bank lender IIFL Finance on Friday said it will open a public issue of bonds on 3 March 2021, to raise up to Rs 1,000 crore, to fund business growth and bolster its capital position.
The Fairfax and CDC Group-backed IIFL Finance will issue unsecured redeemable non-convertible debentures (NCDs), aggregating to Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore, the lender said in a statement. The bonds offer up to 10.03 per cent yield for a tenor of 87 months and the issue has been rated AA by Crisil and AA+ by Brickwork.
According to IIFL Finance, this rate of 10.03 per cent will be locked in for 87 months and is thus provide an advantage against interest rate fluctuations in the future.
Rajesh Rajak, chief financial officer, IIFL Finance said the funds raised will be used to meet the credit needs of more customers and accelerate its digital process transformation. IIFL Finance’s loan assets under management are Rs 42,264 crore, with 90 per cent of the book being of retail origin, focused on small-ticket loans.
The NCDs, it said, will be listed on the BSE Limited and National Stock Exchange of India Limited (NSE), to provide liquidity to investors. The lender added that the bonds would be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The public issue opens on 3 March and closes on 23 March, with an option of early closure.
The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited, and Equirus Capital Private Limited.
IIFL Finance had a gross non-performing asset (NPA) ratio of 1.61 per cent and a net NPA ratio of 0.77 per cent and its total capital adequacy ratio stood at 21.4 per cent at the end of December 2020. In Q3 FY21, IIFL Finance reported a profit after tax of Rs 268 crore.
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