Fairfax-backed IIFL Finance Ltd on Tuesday, June 6, said it will open a public issue of secured bonds on June 9, 2023, to raise up to Rs 1,500 crore, for the purpose of business growth and capital augmentation.
The bonds offer up to 9 percent yield and a high degree of safety, it said.
The company said it 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 1,200 crore (aggregating to a total of Rs 1,500 crore).
The bonds offer an effective yield of 9 percent per annum for a tenure of 60 months. The NCD is available in tenures of 24 months, 36 months, and 60 months. The frequency of interest payment is available on an annual, at-maturity basis and with a monthly option for 60-month tenure.
The IIFL bonds would be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The public issue opens on June 9, 2023, and closes on June 22, 2023, with an option of early closure. The allotment will be made on a first-come-first-served basis.
The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Ltd, Equirus Capital Private Ltd, and Trust Investment Advisors Private Ltd. The NCDs will be listed on the BSE Ltd and NSE, to provide liquidity to investors.
IIFL Finance's group CFO Kapish Jain said the funds raised will be used to meet the credit needs of more such customers and accelerate our digital process transformation to enable a frictionless experience.
(Edited by : Shoma Bhattacharjee)
First Published: Jun 6, 2023 7:59 PM IST
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