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The NBFC secured $50 million from EDC and $50 million from Deutsche Bank, respectively. The deal was structured under the aegis of Deutsche Bank as mandated lead arranger, book runner and co-financier. This would also be IIFL's second loan from EDC. It had previously secured funding of $100 million from EDC in 2019.
For the NBFC, the replacement cost on the fresh borrowing at a competitive rate is expected to result in significant savings in borrowing costs, as compared to its previous fund raise.
IIFL Finance had raised $400 million through its maiden dollar bond issue in February 2020. It was able to buy back the maximum possible amount, as approved by the Reserve Bank of India, with the remaining amount due for maturity later in April 23.
Kapish Jain, the group chief financial officer of IIFL Finance, said, “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.”
Rahul Chawla, co-head, investment bank coverage at Deutsche Bank, India, said, “NBFCs play a very important role in spreading credit to a hitherto unserved customer segment, both in terms of reach and sectors. We are happy to be partnering with IIFL Finance and supporting them in expanding the reach in the theme of inclusive lending.”
IIFL Finance is one of the leading retail focused diversified NBFC in India, engaged in the business of loans and mortgages along with its subsidiaries - IIFL Home Finance and IIFL Samasta Finance.
The company's consolidated net profit rose 22.2% to Rs 378.30 crore on 16.3% increase in total income to Rs 2144.56 crore in Q3 FY23 over Q3 FY22.
The shares of IIFL Finance were up 3.34% to settle at Rs 476.20 on Thursday, 6 April 2023.
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