IIFL Finance Raises $300 Million In Dollar Bonds At 7.60% In Second Overseas Issue Under A Month

Fairfax-backed IIFL Finance has closed a $300 million four-year dollar bond sale to international investors, its second overseas fundraise in under 30 days, as the non-banking finance company pushes to diversify its funding mix and grow its external borrowing base.

Strong demand compressed pricing from initial guidance of 7.85% to a final coupon of 7.60%. The order book built to approximately $900 million, nearly three times the issue size, with $100 million coming from the joint lead managers themselves. HSBC and Standard Chartered were among the mandated book runners. IIFL Finance declined to comment.

Deal At A Glance

• Amount raised: $300 million

• Tenor: Four years

• Final coupon: 7.60%

• Initial price guidance: 7.85%

• Order book: Approximately $900 million

• Book runners: HSBC, Standard Chartered and others

• Fitch rating: B+ expected, in line with long-term foreign-currency issuer default rating

The transaction was executed under IIFL Finance's existing medium-term note programme, allowing the company to move quickly without setting up a new debt issuance framework. A person familiar with the deal said the decision to proceed was driven by the quality of overseas investor demand.

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Part Of A Larger Strategy

This is the second dollar bond from IIFL Finance in less than a month. In early June, the company raised $500 million through bonds maturing in three years and three months at the same 7.60% coupon. Combined, the two transactions bring total overseas bond issuance to $800 million within a single month.

IIFL Finance is targeting an increase in external commercial borrowings from approximately 13% of total funding to 20%, using international bond markets as the primary route to get there. Two successful issuances in quick succession, both drawing order books well above the issue size, suggest that appetite from global investors is giving the company the confidence to move at pace.