Fairfax-backed IIFL Finance raises $175 million from HSBC, Union Bank & Bank of Baroda

IIFL Finance's external commercial borrowing of $175 million in June 2023 along with the $100 million funding raised in March 2023 will take the total borrowing since March 2023 to $275 million.

Earlier on March 31, 2023, IIFL Finance had raised $100 million through the ECB route which included $50 million in long-term funding from Export Development Canada with co-financing of $50 million from Deutsche Bank (Singapore).

Kapish Jain, group CFO of IIFL Finance said these funds are long-term in nature and will help us further strengthen our ALM position and support our continuous growth across our core businesses. This also helps in diversifying our borrowing sources and lower our overall borrowing costs.

At the end of March 2023, the company at the consolidated level has free cash and undrawn lines worth Rs 9,356 crore providing adequate liquidity buffer to service all commitments for the long-term.

In June 2023, the NBFC's secured retail public bonds issue was oversubscribed 1.5 times as it raised Rs 452 crores offering interest rates between 8.35-9 percent for different payment schedules and tenors varying from 24 months to 60 months.

In April, IIFL Finance, which had duly repaid $400 million along with interests it had raised through a maiden dollar bond issue in February 2020. IIFL Finance's loan assets under management is Rs 64,638 crore as on March 31, 2023. Most importantly, 95 percent of the book is retail - which is focused on small-ticket loans.

The company has consistently maintained a low level of NPAs over the years of operations and continues to focus on good quality assets with a gross NPA of 1.8 percent and net NPA of 1.1 percent.