Fairfax-backed, leading Mumbai-based non-banking financial company (NBFC), IIFL Finance (IIFL), has secured $100 million in long-term funding, jointly, from Export Development Canada (EDC) and Deutsche Bank.
The NBFC secured $ 50 million from EDC and $50 million from Deutsche Bank, respectively. The deal was structured under the aegis of Deutsche Bank as mandated lead arranger, book runner and co-financier. This would also be IIFL's second loan from EDC. It had previously secured funding of $100 million from EDC in 2019.
IIFL Finance, had raised $400 million through its maiden dollar bond issue in February 2020. It was able to buy back the maximum possible amount, as approved by the Reserve Bank of India, with the remaining amount due for maturity later in April 23.
For the NBFC, the replacement cost on the fresh borrowing at a competitive rate is expected to result in significant savings in borrowing costs, as compared to its previous fund raise.
Kapish Jain, the Group Chief Financial Officer of IIFL Finance, said, "We are extremely happy with our continuous engagement and partnership with EDC and grateful to them for reposing their confidence in the company. We also thank Deutsche Bank for making this possible as a co-financer. These funds are long-term in nature and will help us further strengthen our ALM position and support our continuous growth across our core businesses."
According to Rahul Chawla, Co-Head, Investment Bank coverage at Deutsche Bank, India, "As a bank we believe in aiding businesses to expand and grow. NBFCs play a very important role in spreading credit to a hitherto unserved customer segment, both in terms of reach and sectors. We are happy to be partnering with IIFL Finance and supporting them in expanding the reach in the theme of inclusive lending."
IIFL Finance is one of the largest retail-focused non-banking financial companies in India with a loan AUM of Rs 57,941 crores at the end December 2022. The company is rated AA/Stable by CRISIL, ICRA and CARE and A1+ by CRISIL and ICRA. The company's consolidated core business segments include home loan, gold loan, digital loan and micro finance loans catering to mostly unbanked and underbanked customers. At the end of December 2022, the company at consolidated level has free cash and undrawn lines worth Rs 8,562 crores providing adequate liquidity buffer to services all commitments for the long-term.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global.
Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific. Deutsche Bank group has been operating in India since 1980 with a strong presence in the businesses of corporate and investment banking, retail banking, private wealth management and global business services. With nearly 18,000 staff and operations across 18 locations in India, the group is recognised as one of the leading foreign financial services providers in India.
Shares of IIFL Finance Limited was last trading in BSE at Rs. 476.20 as compared to the previous close of Rs. 460.80. The total number of shares traded during the day was 28105 in over 1513 trades.
The stock hit an intraday high of Rs. 478.00 and intraday low of 453.20. The net turnover during the day was Rs. 13066395.00.