2 Min Read
IIFL Finance Ltd is preparing to revive its $400 million bond plan after putting it on hold due to restrictions imposed by India’s central bank on parts of its business, according to people familiar with the matter.
The company is in talks with foreign banks and may issue notes maturing in three to five years, said the people, who asked not to be identified discussing private matters.
In September, the Reserve Bank of India lifted the restrictions imposed on the company’s gold-backed lending business, which had been in place since March. The curbs had coincided with the financier’s plans for a dollar bond offering.
If finalised, the deal will be IIFL Finance’s first dollar bond sale in more than four years. The issuance comes as tighter rules make it increasingly hard for shadow lenders to raise local currency bank loans.
The company plans to list the notes at India’s GIFT International Financial Services Centre, the country’s newest financial hub, and the bonds are expected to carry a double-digit interest rate, the people said.
IIFL Finance declined to comment on the transaction. Canada’s Fairfax Financial Holdings Ltd, founded by India-born investor Prem Watsa, is IIFL’s largest shareholder.
The company is in talks with foreign banks and may issue notes maturing in three to five years, said the people, who asked not to be identified discussing private matters.
In September, the Reserve Bank of India lifted the restrictions imposed on the company’s gold-backed lending business, which had been in place since March. The curbs had coincided with the financier’s plans for a dollar bond offering.
If finalised, the deal will be IIFL Finance’s first dollar bond sale in more than four years. The issuance comes as tighter rules make it increasingly hard for shadow lenders to raise local currency bank loans.
The company plans to list the notes at India’s GIFT International Financial Services Centre, the country’s newest financial hub, and the bonds are expected to carry a double-digit interest rate, the people said.
IIFL Finance declined to comment on the transaction. Canada’s Fairfax Financial Holdings Ltd, founded by India-born investor Prem Watsa, is IIFL’s largest shareholder.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Live TV
Loading...