Business Recorder
MUMBAI: Indian gold loan financier IIFL Finance has proceeded with its dollar-bond fundraising plan and invited commitments from global investors, with pricing set to be finalised before the end of the week, two sources said on Wednesday. IIFL Finance plans to raise at least $400 million through this issue, which carries a maturity of three years and three months, the sources said. It has received bidding interest worth around $1 billion at a coupon of around 7.60%, which is 30 basis points lower than the initial price guidance of 7.90%, the sources added. The sources requested anonymity as they are not authorized to speak to the media. IIFL Finance did not immediately respond to a Reuters email seeking comment. India’s IIFL Finance revives dollar-bond plan, to meet investors, sources say The fundraise would help the non-bank lender diversify its sources of funding, as it aims to increase the share of external borrowings to 20% from around 13% currently. The company had shelved its planned overseas borrowing in March as the U.S.-Iran war pushed up yields globally. The notes are secured against the issuer’s receivables and assets and the proceeds will be used for lending in line with IIFL’s social finance framework. Fitch Ratings has assigned an expected rating of B+(EXP) to the issue and these notes will be secured by collateral that includes specified assets and receivables of the issuer, Fitch said.
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