Tag: fairfax

IIFL Finance to raise up to Rs 1,000cr, BFSI News, ET BFSI

Personal Finance

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Fairfax-backed IIFL Finance plans to raise a Rs 1,000-crore public issue of secured bonds on September 27 for business growth and capital augmentation. The bonds offer up to 8.75% yield and are rated AA/Stable by Crisil and AA+/negative by Brickwork. The size of the issue is Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore).

In addition to the coupon, the company will offer an incentive of 0.25% per annum for existing bond or equity shareholders. The NCD is available in tenors of 24, 36 and 60 months. The frequency of interest payment is available on a monthly, annual and at maturity basis for the 60-month tenor, while for other tenors it is available on an annual and at maturity basis.

“The funds raised will be used to meet the credit need of more such customers and accelerate our digital process transformation to enable a frictionless experience,” IIFL Finance CFO Rajesh Rajak said.

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IIFL Finance to raise up to ₹1,000 crore

Banking & Finance

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IIFL Finance will open a public issue of bonds on March 3, 2021, to raise up to ₹1,000 crore. The issue will close on March 23.

The funds will be used for business growth and capital augmentation, it said in a statement on Friday, adding that the bonds offer up to 10.03 per cent yield.

The Fairfax and CDC Group-backed IIFL Finance will issue unsecured redeemable non-convertible debentures (NCDs), aggregating to ₹100 crore, with a green-shoe option to retain over-subscription up to ₹900 crore (amounting to a total of ₹1,000 crore).

Negative perception, liquidity squeeze have pushed NBFCs to the brink: IIFL Finance chief

Digital process transformation

Rajesh Rajak, CFO, IIFL Finance, said, “Through a physical presence of 2,500 branches across India and a well-diversified retail portfolio, IIFL Finance caters to the credit needs of under-served population. The funds raised will be used to meet credit needs of more such customers and accelerate our digital process transformation.”

The lead managers to the issue are Edelweiss Financial Services, IIFL Securities and Equirus Capital. The NCDs will be listed on the BSE and National Stock Exchange.

IIFL Securities all set to acquire Karvy Stock Broking demat accounts

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IIFL Home Finance, Standard Chartered enter into co-lending partnership, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: Fairfax and CDC-backed IIFL Finance on Tuesday said its wholly-owned subsidiary IIFL Home Finance Ltd and Standard Chartered Bank have entered into a co-lending arrangement for extending MSME loans.

Under this partnership, IIFL Home Finance Ltd and the Standard Chartered Bank will co-originate these loans and the IIFL Home Finance Ltd will service the customers through the entire loan life-cycle including sourcing, documentation, collection and loan servicing, IIFL Finance said in a regulatory filing.

“We believe this is one of the first co-lending partnerships after the RBI’s revised guidelines,” Monu Ratra, the CEO of IIFL Home Finance, said.

IIFL Home Finance in December partnered with ICICI Bank to provide affordable housing and MSME loans as a sourcing partner. In October CSB Bank had also partnered with IIFL Finance for sourcing and managing retail gold loan assets.

IIFL Finance is a retail-oriented non-banking finance companies (NBFC) with about 90 per cent of its Rs 41,000 crore loan book under the retail category.

In November last year, the Reserve Bank had came out with a Co-Lending Model (CLM) scheme under which banks can provide loans along with NBFCs to priority sector borrowers based on a prior agreement.

The CLM, an improvement over the co-origination of loan scheme announced by the RBI in September 2018, seeks to provide greater flexibility to the lending institutions.



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