By Siddhi Nayak and Dharamraj Dhutia
MUMBAI (Reuters) – India’s IIFL Finance plans to raise up to $150 million by reissuing its 8.75% 2028 dollar-denominated bonds, two sources aware of the matter said on Tuesday.
The non-banking finance company has started marketing the issue and may sell the bonds at yields in the 8.30%-8.40% range, the sources said requesting anonymity as they were not authorised to speak to the media.
The company declined to comment on the development.
The notes are rated B+ by S&P and Fitch Ratings in line with the issuer’s ratings.
The company initially sold the notes, which had a maturity of three years and six months, in January, raising $325 million.
The proceeds of the issue would be used for lending, the sources said, adding that the final quantum and yield are expected to be finalised later in the day.
“The funds will be used for onward lending, to speed up growth capital since the company is fresh off a central bank ban and wants to expand its book share,” one of the sources said.
In September, the Reserve Bank of India lifted the restrictions on the company’s gold loan business, originally placed in March on concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
Separately, the company is also raising up to 1.50 billion rupees ($17.17 million) via two-year bonds later in the week.
Indian firms raised around $12.05 billion via dollar bonds last year, more than double the $5.70 billion raised in 2023, according to data from financial data aggregator Cbonds.
Investors expect another robust year for such notes.
($1 = 87.3375 Indian rupees)
(Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Janane Venkatraman)
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