NCD Issue of IIFL Finance Closes Ahead of its Scheduled Date
The non-convertible debenture issue of IIFL Finance, which had opened for subscription on 27-Sep was closed on 08-Oct, a week ahead of its scheduled closing on 18-Oct. The response to the IIFL NCD was much bigger than originally anticipated and with the NCD issue already subscribed 9.35 times, the company decided to close the NCD issue early.
IIFL Finance had launched its NCD issue for investors with a base size of Rs.100 crore and a Greenshoe option to retail additional subscription up to Rs.1,000 crore or 10 times the base size of the issue. With subscription worth Rs.935 crore received till 08-Oct, IIFL Finance opted to close the issue early. All NCD allotments will be on compulsory demat mode only.
IIFL Finance is the fund-based business of the IIFL group and its business activity encompasses loans to individuals, professionals, MSMEs etc. It has a loan AUM in excess of Rs.61,500 crore. IIFL Home Finance is a subsidiary of IIFL Finance. IIFL has two more listed companies for its securities business and its wealth management business.
The IIFL Finance NCDs were offered in 3 tenors of 24 months, 36 months and 60 months. Each of these tenures had an annual interest payment option as well as a deep discounted bond option. There was an additional option of monthly interest payments, but that was only available in the 5 year tenure bonds.
The NCDs offered peak yields of 8.75% for the highest tenure of 60 months, which is among the best in the peer group in the market. In addition, there was an additional incentive in the form of bonus 0.25% coupon payable to shareholders and bondholders of IIFL Finance as well as to the bondholders of IIFL Home Finance.
Check - What are Pros and Cons of Investing in NBFC NCDs
The NCD issue had been assigned credit rating of AA/Stable by CRISIL and a rating of AA+/Negative by Brickwork. This represents high degree of safety with respect to the timely servicing of interest and principal obligations from time to time. In addition, IIFL group has enjoyed high degree of customer trust considering its stellar track record of servicing debt.
In a tweet, the group chairman, Nirmal Jain, thanked the investors for making the bond issue a resounding success and for reposing their trust in the company.
Start Investing Now!
Open Free Demat Account in 5 mins