Business Today: Nirmal Jain-led IIFL Finance to issue Secured Bonds worth Rs 1,500 cr

businesstoday.in: Financial services firm IIFL Finance on Friday said it is all set to open a public issue of secured bonds to raise up to Rs. 1,500 crore, for the purpose of business growth and capital augmentation.
The financial institution, at a press briefing in Mumbai said that the bonds offer up to 9 per cent yield and high degree of safety, they will be issued as secured redeemable non-convertible debentures (NCDs), aggregating to Rs 300 crore, with a green-shoe option to retain over-subscription of up to Rs 1200 crore.
The NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on annual, at maturity basis and with monthly option for 60-month tenure, the company said.
"It's a Rs 1500 crore raise which isn't much when compared to our loan book. The NCDs will help us strengthen and execute our expansion plans," said Nirmal Jain, Chairman, IIFL Finance.
Talking about the growth plans, Jain said the focus in expanding branches has now shifted after the company registered over 4,000 branches. "This year we will open around 150 branches and forecast a 25 per cent growth in the loan book," he explained.
The raise comes almost a year after Jain off loaded 20 per cent of his stake in the group's housing finance subsidiary. The stake was picked up by Abu Dhabi Investment Authority (ADIA) for about 2,200 crore.
At the announcement of the current public issues, Jain clarified that he has no further plans of dilution.
IIFL Finance’s Loan Assets under Management is Rs 64,638 crore as on March 31, 2023. Gross NPA stood at 1.8 per cent and Net NPA at 1.1 per cent.
In FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore.
The public issue opens on June 09, 2023 and closes on June 22, 2023, with an option of early closure.