Financial services firm IIFL Finance is in advanced discussions with foreign banks to raise up to $400 million through a bond sale, Bloomberg reported citing sources. People familiar with the matter told Bloomberg that the proceeds from this bond issuance are earmarked for expanding the company's lending activities.
The proposed bond issuance, which is expected to have a tenure of around three years would mark the company's first bond sale since April 2020. This initiative is part of the company's efforts to diversify its funding sources and optimise its financial structure.
The bond issuance is anticipated to take place within the next two months, subject to the finalisation of terms and regulatory approvals. IIFL Finance's decision to raise funds through bonds under the Reserve Bank of India's external commercial borrowing program reflects its strategic approach to accessing overseas capital markets. By leveraging this program, the company aims to capitalise on favourable market conditions and secure competitive financing options to support its growth trajectory.
As the financial landscape continues to evolve, IIFL Finance's pursuit of international funding underscores its resilience and adaptability in navigating challenges and seeking opportunities in the dynamic financial ecosystem. With the bond sale on the horizon, all eyes are on IIFL Finance as it charts its course for expansion and sustains its momentum in the competitive lending market.
