IIFL Holdings subsidiary IIFL Finance has got Rs 325 crore funding from UK government's development finance institution CDC Group Plc by way of masala bonds.
IIFL Holdings said it is the maiden masala bonds(Rupee Denominated Bonds) issue by the group.
This debt facility -- CDC's first investment in masala bonds -- will help IIFL Finance to grow its loan book and reach more customers in under-served sectors and regions of India, said CDC Managing Director and Head of South Asia Srini Nagarajan.
He said the company also expects that this investment will help IIFL Finance mobilise additional capital from other long-term investors.
IIFL Finance gives small ticket home loans, of which Swaraj loans is one of the fastest growing segment with average ticket-size of Rs 13 lakh.
Besides, it provides SME loans of up to Rs 7 lakh to fulfil the financing needs of small retailers, traders and other businesses.
Company's loan book stood at Rs 31,134 crore as on March 31, 2018. It had posted a net profit of Rs 554 crore in 2017-18.
"CDC's investment in IIFL Finance subordinate bonds will help us shore up capital adequacy and enable us to grow our loan book. We are targeting to grow our affordable housing loans and small ticket unsecured business loans," said R Venkataraman, Director, IIFL Finance.
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