IIFL Finance raises $175 million from HSBC, Union Bank, Bank of Baroda

Non-banking finance company, IIFL Finance, announced on Monday that it has raised $175 million through an external commercial borrowing (ECB) route in June. It stated that it had raised $75 million from HSBC, $50 million each from Union Bank (Sydney) and Bank of Baroda (IFSC unit). 

The funds were raised at Secured Overnight Financing Rate or SOFR plus 200 basis points. 

Before this, IIFL Finance had raised $100 million through ECB route, including $50 million in long-term funding from Export Development Canada with co-financing of $50 million from Deutsche Bank (Singapore) on March 31.

“These funds are long-term in nature and will help us further strengthen our ALM position and support our continuous growth across our core  businesses. This also helps in diversifying our borrowing sources and lower our overall borrowing costs,” said Kapish Jain, Group CFO, IIFL Finance.  

As per the statement, as on March-end, the company had free cash and undrawn lines worth Rs 9,356 crore. The company, in April, had repaid $400 million along with interests it had raised through a maiden dollar bond issue in February 2020.

IIFL Finance, whose core business segments include home, gold, digital and micro finance loans, has over 4,000 branches and over 85 lakh customers. IIFL Finance’s Loan Assets Under Management is Rs 64,638 crore as on March 31. 

In April, Moody’s upgraded IIFL Finance’s international credit ratings to B1 stable from B2. 

In June, the NBFC’s secured retail public bonds issue was oversubscribed 1.5 times as it raised Rs  452 crore offering interest rates between 8.35-9 per cent for different payment schedules and tenors varying from 24 months to 60 months. 

Also read: IIFL Securities to appeal at SAT against SEBI order that barred it from onboarding new clients