IIFL Finance’s issue of secured NCDs to open Friday; to offer up to 9% on 60-month tenure
1 min read . Updated: 03 Jan 2023, 02:26 PM IST
PremiumIIFL Finance aims to raise up to ₹1,000 crore through this issue for the purpose of business growth.
IIFL Finance’s public issue of secured non-convertible debentures (NCDs) will open on 6 January and close on 18 January.
The non-banking finance company aims to raise up to ₹1,000 crore through this issue for the purpose of business growth.
The NCDs offer up to 9% yield and high degree of safety, IIFL Finance said. The NCDs will be offered for three tenures of 24 months, 36 months and 60 months with the highest effective yield of 9% per annum available for the tenor of 60 months.
The frequency of interest payment is available on monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on annual and at maturity basis.
The secured redeemable NCDs, aggregating to ₹100 crore, will be issues with a green-shoe option to retain over-subscription up to ₹900 crore (aggregating to a total of ₹1,000 crore).
“The credit rating has been AA/Stable by Crisil and AA/Stable by ICRA, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk," IIFL Finance said in its statement.
The NBFC claimed that it has consistently maintained low NPAs over the years of operations and continues to focus on good quality of assets with gross NPA of 2.42% and net NPA of 1.22%. “Additionally, as on September 30, 2022, 85.03% of the company’s consolidated loan book is secured with adequate collaterals which helps to mitigate risks further," it said.
“IIFL has an impeccable track record of close to three decades and all the NCD issues and debt obligations have always been timely serviced, abled by strong liquidity management framework," said Kapish Jain, CFO, IIFL Finance.
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“Through a diversified multi-channel distribution network and a strong physical presence of over 3,700 branches across India, IIFL Finance caters to delivering small loans to sound under-banked people and enterprises in India. The funds raised will be used to meet credit need of more such customers," Jain added.
The NCDs will be listed on the BSE and National Stock Exchange and would be issued at face value of ₹1,000 and the minimum application size is ₹10,000 across all categories. IIFL Finance said the allotment will be made on first come first served basis.
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