IIFL
Finance will issue secured redeemable non-convertible debentures (NCDs),
aggregating to Rs 300 crore, with a green-shoe option to retain
over-subscription of up to Rs 1200 crore (aggregating to a total of Rs 1,500
crore).
The
IIFL bonds offer highest effective yield of 9% per annum for tenor of 60
months. The NCD is available in tenors of 24 months, 36 months and 60 months.
The frequency of interest payment is available on annual,at maturity basis and
with monthly option for 60-month tenure.
The
credit rating has been AA/Stable by CRISIL Ratingsand 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.
In Q4 FY23, Moody’s upgraded IIFL Finance’s rating from B2 to B1 (stable).
Gaurav
Mishra, Director, IIFL said, “IIFL Finance through a strong physical presence
of over 4000 branches across India and a well-diversified retail
portfoliocaters to the credit needs of underserved population. The funds raised
will be used to meet credit need of more such customers and accelerate our
digital process transformation to enable a frictionless experience.”
He
added, “IIFL has an impeccable track record of more than 25 years and all the
bond issues and the debt obligations have always been paid on time.” In April,
IIFL Finance duly repaid $400 million worth of dollar bonds, raised through
medium-term notes in February 2020.
IIFL
Finance is one of India’s largest retail-focused financial services companies.
IIFL Finance’s Loan Assets under Management is Rs 64,638crore as on March 31,
2023. Most importantly, 95% of the book is retail - which is focused on
small-ticket loans.
IIFL
Finance has consistently maintained low level of NPAs over the years of
operations and continues to focus on good quality of assets with Gross NPA of
1.8% and Net NPA of 1.1%. As on March
31, about 73.53 % of the company’s consolidated loan book is secured with
adequate collaterals which helps to mitigate risks further.
In
FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore, up 35% on
year with a robust return on equity of 19.9%. It has strong relationship with
multiple banks and financial institutions.
The
lead managers to the issue are Edelweiss Financial Services Limited, IIFL
Securities Limited, Equirus Capital Private Limited and Trust Investment
Advisors Private Limited. The NCDs will be listed on the BSE Limited and
National Stock Exchange of India Limited (NSE), to provide liquidity to
investors. The IIFL Bonds would be issued at face value of Rs 1,000 and the
minimum application size is Rs 10,000 across all categories. The public issue
opens on June 09, 2023 and closes on June 22, 2023, with an option of early
closure. The allotment will be made on first come first served basis.
0 Comments