Mumbai: IIFL Finance on Monday said it will raise up to ₹1,000 crore through a public issue of bonds, for the purpose of business growth and expansion.
The bonds will offer yield of 10.5% per anum for tenor of 69 months and 10% for shorter tenor of 15 months for the secured category, the non-banking financial company (NBFC) said in a statement.
“The UK-based CDC Group-backed IIFL Finance will issue secured and unsecured redeemable non-convertible debentures (NCDs), aggregating to ₹100 crore, with a green-shoe option to retain over-subscription up to ₹900 crore (aggregating to a total of ₹1,000 crore),” it said.
Credit rating agency CRISIL has rated the instrument as AA/stable, the statement said.
Sumit Bali, chief executive officer, IIFL Finance said, ” The funds raised will help us in expanding our operation in more such areas.”
The lead managers to the issue are Edelweiss Financial Services Ltd, IIFL Securities Ltd, ICICI Securities, and Trust Investment Advisors Private Ltd.
“The NCDs will be listed on BSE and NSE, to provide liquidity to investors. The IIFL Bonds would be issued at face value of₹1,000 and the minimum application size is ₹10,000 across all categories. The public issue opens on 6 August, 2019 and closes on 30 August 2019, with an option of early closure,” the statement said.