IIFL Finance to raise Rs 1,000 cr through bonds

IIFL Finance will issue secured redeemable non-convertible debentures (NCDs), aggregating to Rs 100 crore, with a green-shoe option to retain oversubscription up to Rs 900 crore, thus aggregating to a total of Rs 1,000 crore.

Sep 24, 2021 12:09 IST capital market

The non-banking financial company said it is planning to raise up to Rs 1,000 crore through issuance of NCDs of various maturity.

The company will issue NCDs aggregating to Rs 100 crore, with a green-shoe option to retain oversubscription up to Rs 900 crore. The bonds are available in tenors of 24 months, 36 months and 60 months.

The frequency of interest payment is available on a monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on an annual and at maturity basis.

The bonds offer the highest effective yield of 8.75% per annum for the tenor of 60 months. The company will also offer an incentive of 0.25% per annum for its existing bond or equity shareholders.

The funds raised will be used for onward lending, financing, refinancing the existing indebtedness of the company, and general corporate purposes.

The issue will open on 27 September 2021, and close on 18 October 2021, with an option of early closure or extension.

The NCDs will be listed on the BSE and National Stock Exchange of India (NSE). The bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

Shares of IIFL Finance were down 0.47% at Rs 274. The stock hit a high of Rs 275.75 and a low of Rs 267.05 so far.

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