Kolkata: IIFL Finance’s microfinance subsidiary IIFL Samasta Finance is all set to hit the market next week to raise Rs 1000 crore by selling bonds in public issues.
The company, registered as a non-banking finance company-microfinance institution (NBFC-MFI), will be paying interest rates between 9.2% and 10.5% a year.
The fund will be raised for onward lending as well as refinancing the existing debt, the company said.
“We are raising public bonds to fulfill credit requirements of underserved and unserved customers across the 417 districts we operate in the country, as the large part of the country gets into monsoon season, credit requirements for agriculture, agri-allied and related micro MSME businesses will increase,” managing director Venkatesh N M Told ET.
The tenure of the bonds will be 24 months, 36 months and 60 months, with interest monthly and annual interest paying options. The base size of the issue of Rs 200 crore with an option to retain oversubscription up to Rs 800 crore.
The lender will offer the highest 10.50% coupon for annual series with tenure of 60 months, while the lowest coupon will be offered for 24 months.
The issue will open for subscription on June 3 and is slated to close to June 14. The company said 30% of the total allocation will be kept for retail investors.
This is the second public issue by IIFL Samasta. In its maiden public issue in November last year, the company raised Rs 607 crore.
Its assets under management stood at Rs 14,211 crore at the end of FY24, registering about 35% annual growth over Rs 10,552 crore AUM seen at the end of the preceding fiscal.
The lender’s gross non-performing assets ratio was at 1.91% at the end of March.
Crisil Ratings has assigned “AA-/Watch Developing” rating to the issue while Acuite Ratings & Research assigned a “AA/ Rating Watch Negative Implication.”
