IIFL Finance to Reissue 2028 Dollar Bonds: Aims to Raise $150 Million
IIFL Finance, a leading non-banking financial company (NBFC) in India, is planning to reissue its 8.75% dollar-denominated bonds maturing in 2028. The company aims to raise up to $150 million through this reissuance, according to sources familiar with the matter.
Key Details of the Bond Reissue
Here are the critical details of IIFL Finance’s bond reissue plan:
- Bond Yield: The bonds are expected to be sold at yields ranging between 8.30% and 8.40%.
- Rating: The bonds are rated B+ by both S&P and Fitch Ratings, aligning with the issuer’s credit rating.
- Previous Issuance: The company initially raised $325 million through these bonds in January 2025, with a maturity period of three years and six months.
Purpose of the Fundraising
The proceeds from the bond reissue will be utilized for onward lending and to accelerate growth capital. This move comes as IIFL Finance seeks to expand its loan book following the recent lifting of restrictions on its gold loan business by the Reserve Bank of India (RBI).
Background: RBI Restrictions and Recovery
In March 2025, the RBI imposed restrictions on IIFL Finance’s gold loan business due to concerns over its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio. However, these restrictions were lifted in September 2025, allowing the company to resume normal operations.
One source stated, "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."
Additional Fundraising Plans
In addition to the dollar bond reissue, IIFL Finance is also raising up to 1.50 billion rupees ($17.17 million) through two-year bonds later this week. This dual fundraising strategy highlights the company’s focus on strengthening its financial position and supporting its growth ambitions.
Indian Dollar Bond Market Trends
Indian companies raised approximately $12.05 billion through dollar bonds in 2025, more than double the $5.70 billion raised in 2024, according to data from Cbonds. Investors anticipate another strong year for dollar bond issuances in 2026, driven by favorable market conditions and growing investor confidence.
Conclusion
IIFL Finance’s decision to reissue its 2028 dollar bonds reflects its strategic efforts to bolster liquidity and support expansion plans. With the RBI restrictions behind it, the company is well-positioned to capitalize on growth opportunities in the NBFC sector.
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