The public issue of the NCDs will open on January 6, 2023. In a press release, The Fairfax-backed IIFL said the NCDs would offer up to 9 per cent yield with a high degree of safety.
The secured redeemable NCDs, aggregating about Rs 100 crore, have a green-shoe option to retain over-subscription by up to Rs 900 crore or aggregating a total of Rs 1,000 crore, it said.
The NCDs would offer the highest effective yield of 9 per cent per annum for a 60-month tenor. They are also available in 24-month and 36-month tenors.
The company said the interest payment frequency for a 60-month tenor would be monthly, annually, and at maturity, while other tenors are available on an annual and maturity basis.
Rating agencies Crisil and ICRA Ltd. have rated the instruments AA/Stable, “indicating a high degree of safety for timely servicing financial obligations,” with low credit risk.Commenting on the NCDs, Kapish Jain, chief financial officer (CFO) of IIFL, said, “IIFL has an impeccable track record of close to three decades, and all the NCD issues and debt obligations have always been timely serviced, abled by strong liquidity management framework.”
IIFL data showed the company’s consolidated loan assets under management were Rs 55,302 crore as of September 30, 2022. Its gross NPA (non-performing assets) was 2.42 per cent, and the net NPA was 1.22 per cent at the time.
The company said 95 per cent of its book is small ticket retail loans. In the second quarter of FY23, IIFL reported consolidated profit after tax was Rs 397 crore, up 36 per cent year-on-year (YoY), with a robust return on equity of 20.4 per cent.
Key Details of the NCD Issue
