- Raised $325 million at a coupon rate of 8.75% with a 3.5-year tenor.
- Peak demand of $1.15 billion, final order book stood at $730 million.
- Proceeds to fund on-lending and support growth diversification.
IIFL Finance, a leading non-bank lender, raised $325 million through an international bond issuance at a coupon rate of 8.75% for a 3.5-year term. The issuance attracted a peak demand of $1.15 billion, with the final order book closing at $730 million. Fund managers dominated the allocation with a 95% subscription rate, while private banks and insurance companies covered the rest.
The funds raised will bolster IIFL’s on-lending activities, supporting its growth ambitions and enabling diversification of funding sources. With a B+ rating from S&P and Fitch, the issuance signals market confidence in IIFL’s creditworthiness and strategic direction.
IIFL Finance Expands Global Footprint with $325 Million Bond Issuance
Non-bank lender IIFL Finance has made a significant entry into the global bond market, raising $325 million with a 3.5-year bond issuance at a competitive coupon rate of 8.75%. The company aims to utilize the proceeds for on-lending, supporting its growth while reducing reliance on traditional bank funding.
The bond offering, rated B+ by S&P and Fitch, saw robust investor interest, peaking at $1.15 billion. Ultimately, the final order book closed at $730 million, showcasing strong demand despite global economic uncertainties. Geographic allocations were diverse, with 54% of the bonds subscribed in the US, 25% in Europe, the Middle East, and Africa, and 20% in Asia.
This move aligns with a broader trend among Indian NBFCs seeking to tap international markets. IIFL follows Tata Capital’s recent $400 million bond issuance, reflecting increased confidence in the Indian financial sector’s ability to attract overseas investments.
Additionally, the successful issuance underscores IIFL’s commitment to prudent financial management and stakeholder value. With its strategic focus on funding diversification and a growing investor base, the company is well-positioned to drive future growth.
IIFL Finance’s successful bond issuance marks a pivotal step in its journey toward global financial integration, setting a strong precedent for other NBFCs in India.
“This issuance not only allows us to diversify our funding sources but also reinforces our commitment to delivering value to stakeholders while adhering to prudent financial practices.” – IIFL Finance
