IIFL Finance Announces Record ₹2,000 Crore Public Bond Offering
IIFL Finance, a prominent non-banking finance company (NBFC) backed by Fairfax, is preparing to launch its largest-ever public bond issue, valued at ₹2,000 crore (approximately $220.60 million). This marks the company's second such offering in the current financial year, as confirmed by managing director Nirmal Jain and sources familiar with the development.
Details of the Bond Issue and Strategic Objectives
The primary goal of this substantial fundraise is to diversify IIFL Finance's funding sources. According to Jain, the company anticipates growing demand for public bonds in the Indian market. The bonds will be issued with maturities of two, three, and five years, offering flexible interest payment options including annual, monthly, and end-of-term payments.
The specific coupon rates are set at 8.70% for two-year bonds, 8.85% for three-year bonds, and 9% for five-year bonds. These instruments have received an AA rating from both Crisil Ratings and Brickwork Ratings, indicating a high degree of creditworthiness and low default risk.
Lead Managers and Subscription Timeline
IIFL Capital Services, Nuvama Wealth Management, and Trust Investment Advisors have been appointed as the lead managers for this issue. The subscription window is expected to open next week, providing investors with an opportunity to participate in this significant offering.
A person with knowledge of the matter stated that "the proceeds from the fundraise will be utilized for onward lending, refinancing of existing borrowings, and general corporate purposes." This strategic allocation aims to strengthen the company's lending capabilities and optimize its debt structure.
Context and Previous Fundraising Activity
This move follows IIFL Finance's previous public bond issue in April 2025, where the company successfully raised ₹5 billion. The current ₹2,000 crore issue represents a substantial increase in scale, reflecting the company's confidence in market conditions and investor appetite.
Public bonds have been gaining significant momentum in India's financial landscape. Data from the Securities and Exchange Board of India (SEBI) reveals that Indian companies raised approximately ₹71 billion through public bond issues in the first nine months of this financial year, highlighting a growing trend toward this funding avenue.
IIFL Finance's Recent Financial Performance
IIFL Finance, which specializes in gold and business loans, recently announced impressive results for the October to December 2025 quarter. The company reported a multifold increase in net profit, soaring to ₹501 crore from ₹82 crore in the same quarter of the previous year.
The NBFC's gold loan assets under management (AUM) nearly tripled to ₹43,432 crore, driven by robust growth in tonnage and consistent asset quality. Other segments showed mixed performance:
- Home loan AUM increased by 5% year-on-year to ₹31,893 crore.
- MSME loan AUM rose by 17% to ₹10,081 crore.
- Microfinance loan AUM declined by 19% to ₹8,360 crore.
This strong financial backdrop supports IIFL Finance's ambitious bond issue, positioning the company to leverage its growth trajectory and expand its lending operations further.
