IIFL Finance Share Price Jumps 6% On Thursday; Here's Why

On Thursday, Indian equity benchmarks ended marginally higher, with the benchmark Nifty 50 index gaining 0.05 per cent to close at 23,416.55. Amid the positive market sentiment, IIFL Finance's share price jumped 6.32 per cent to Rs 530.30, emerging among the notable gainers of the session. The stock remained in focus after the company approved the pricing and terms of a USD 500 million overseas bond issuance.

IIFL Finance Prices USD 500 Million Notes Issue

IIFL Finance informed the stock exchanges that its Finance Committee approved the pricing, tenure and other terms of fixed-rate, senior secured notes to be issued under Regulation S and/or Rule 144A of the U.S. Securities Act, 1933. The issuance forms part of the company's USD 1 billion Global Medium Term Note (GMTN) Programme.

The proposed issue size has been fixed at USD 500 million, with the notes carrying an expected credit rating of B+ from S&P and B+ from Fitch.

IIFL Finance Coupon And Maturity Details

According to the filing, the notes will have a tenure of 3.25 years and are scheduled to be allotted on June 10, 2026. The notes will mature on September 10, 2029.

The company has fixed a 7.60 per cent annual coupon, payable semi-annually on March 10 and September 10 every year, commencing from March 10, 2027. The principal amount will be redeemed at par upon maturity.

Proceeds To Support Lending Growth

IIFL Finance stated that the proceeds will be utilised in accordance with its Social Finance Framework and applicable External Commercial Borrowing (ECB) regulations.

The funds will primarily be used for onward lending activities and to support the continued growth of the company's lending business.

IIFL Finance Secured Notes Structure

The notes will be secured through a first-ranking pari passu charge over specified present and future receivables and assets of the company, including operating cash flows, accounts, current assets, loans, advances and receivables, subject to security coverage requirements outlined in the offering circular.

The proposed notes are expected to be listed on India International Exchange IFSC and NSE IFSC.

About IIFL Finance 

IIFL Finance Ltd is a diversified non-Banking financial company (NBFC) engaged in providing home loans, gold loans, business loans, microfinance, developer financing and capital market-related lending solutions.

The company serves retail and corporate customers across India through an extensive branch network and digital lending platforms. Over the years, IIFL Finance has established a presence across multiple lending segments, focusing on financial inclusion and credit accessibility.

Disclaimer: The article is for informational purposes only and not investment advice.