IIFL Finance Limited (“IIFL”) has successfully raised USD 325 million through a Fixed Rate Senior Secured Bond, priced at a competitive coupon rate of 8.75% with a door-to-door tenor of 3.5 years. This issuance marks IIFL’s significant re-entry into the international bond markets after its debut offering in February 2020, further diversifying its borrowing profile.
The bond offering witnessed an overwhelming response from global institutional investors across Asia, Europe, and the United States. The transaction began with an initial pricing guidance of 9.00% and garnered peak demand of USD 1.15 billion at final pricing guidance. The final order book stood at over USD 730 million, with allocations of 20% in Asia, 25% in EMEA (Europe, the Middle East, and Africa), and 54% in the US. High-quality fund managers accounted for 95% of the allocation, while insurance companies and private banks made up 3% and 2%, respectively.
The proceeds from this issuance will be used for onward lending, as per the External Commercial Borrowing (ECB) Guidelines by the Reserve Bank of India (RBI).
The successful issuance comes in the wake of the RBI’s decision to lift the ban on IIFL’s gold financing business in September 2024, further strengthening investor confidence. IIFL’s management highlighted its resilient business model, robust processes, and strong risk controls during extensive investor engagements over the last few days.
Commenting on the successful issuance, Kapish Jain, CFO of IIFL Finance, said:
“The strong response to this bond offering from top-tier global institutional investors is a testament to the trust and confidence in IIFL’s business model, operational strength, and governance standards. This issuance not only allows us to diversify our funding sources but also reinforces our commitment to delivering value to stakeholders while adhering to prudent financial practices.”
The bond offering was rated B+ by both S&P and Fitch, with a stable outlook. Leading international banks—Standard Chartered Bank, HSBC, Mizuho, and Deutsche Bank—acted as joint book runners for the transaction.