Great opportunity to earn 10.50% on your investments with IIFL Bonds

Jan 23, 2019 7:30 IST 6806 views

Retail Investors looking for higher returns from their debt investments can earn as much as 10.50% per annum from public issue of IIFL’s Non-Convertible Debenture (NCD). This rate of return is hard to resist in an environment where returns from market-linked securities have been uncertain and returns from Fixed Deposit still hover around ~6-7%. 
Given the low returns for fixed income investors, IIFL’s offering of highest yield on bonds suggests good times for investors. NCDs are usually listed on the exchanges and can be traded in the market within the prescribed tenure, and any investor with a demat account can invest in it.
The NCDs issued by IIFL will be listed on the BSE and NSE to provide liquidity to investors. Investors have a choice to opt for monthly and annual payment options for a tenure of 120 months. The other tenures available are for 39 and 60 months.  IIFL Bonds are also available for institutional category for 10.35% per annum. 
IIFL Finance of IIFL Group will open the public issue of bonds on January 22, 2019 on first come first served basis with a face value of Rs 1,000 and minimum application size of Rs 10,000 across all categories. 
IIFL plans to raise up to Rs. 2,000 crore through this secured and unsecured redeemable non-convertible debentures, for the purpose of business growth and expansion.  Commenting on the NCD issue, Mr. Prabodh Agrawal, IIFL Group CFO said, “The funds raised through this Issue will be used for the purpose of onward lending, financing, and for general corporate purpose. Each of the previous bond issues from IIFL Group have been over-subscribed and repaid in a timely manner.”
Advisors recommend picking debentures from well-established, cash flow-rich and high-rated companies; and IIFL successfully meets all the pre-requisites of a right selection. IIFL has a strong pedigree of over 23 years and is one of the most respected company in the financial services space. The company’s subsidiary IIFL Finance has demonstrated strong financial performance with a profit after tax of Rs 357.2 crore for the half year ended September 30, 2018, posting a growth of 69% y-o-y. IIFL Finance is well-capitalized NBFC with a Net Worth of Rs 4,000 crore and Total Capital Adequacy Ratio (CAR) of 18.7% as at September 30, 2018, including Tier I capital of 15.5%, as against the statutory requirement of 15% and 10% respectively. Further, CRISIL has rated the instrument as AA/Stable, indicating a high degree of safety for timely servicing of financial obligations with relatively low risk of default. 


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