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IIFL Finance Eyes Rs 1,000 Cr via Bonds, Issue Opens on Aug 6

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Public issue of bonds of IIFL Finance, which plans to raise up to Rs 1,000 crore for business growth and expansion, will open.

The allotment will be made on the ‘first come, first served’ basis. The public issue, which will close on August 30, also has the early closure option, according to a company statement.

“The UK-based CDC Group-backed IIFL Finance will issue secured and unsecured redeemable non-convertible debentures (NCDs), aggregating Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating Rs 1,000 crore),” it said.

The IIFL bonds offer highest yield of 10.50 per cent per annum for the 69-month tenor and 10 per cent per annum for the 15-month tenor for the secured category. The bonds have monthly, quarterly and annual payment frequency. The other tenor offered is 39 months for the secured category.

The NCDs would be listed on the BSE and the National Stock Exchange (NSE) to provide liquidity to investors. The bonds will be issued at Rs 1,000 face value and the minimum application size is Rs 10,000 across all categories.

Edelweiss Financial Services Ltd, IIFL Securities Ltd, ICICI Securities and Trust Investment Advisors Private Ltd are the lead managers to the issue.

Monu Ratra, CEO, IIFL Home Finance, said: “Through our strong physical presence of 1,947 branches across India and a well-diversified portfolio, we are able to meet the credit requirement of various segments of the under-served population. The funds raised will help us in expanding operation to more such areas.”

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