IIFL Finance, which is one of India's largest non-banking finance companies (NBFC) stated that it has raised JPY 7.5 billion (US$50 million) through external commercial borrowing (ECB) route. This is an inaugural JPY denominated facility for the NBFC. The retail-focused NBFC has raised the funds from Mizuho Bank's Singapore branch.
The funds were raised at a fairly competitive pricing over TONAR (Tokyo Overnight Average Rate).
Mr. R Venkataraman, Joint Managing Director, IIFL Finance Limited said, "This is a significant milestone for IIFL Finance to raise funds from an esteemed financial institution like Mizuho Bank. This fund raise is a testimony of growing acceptability of IIFL Finance credit in the global market. We shall continue to diversify our borrowing options to support our growth."
Mr. Kapish Jain, Group CFO, IIFL Finance Limited said, "This fund raise opens new geography like Japan for us and is also beginning of a new relationship with a distinguished name like Mizuho Bank. This is for the first time that IIFL has accessed JPY funding, thus adding diversity and cost efficiency to our funding profile." The facility being long term will also strengthen our Asset Liability position.
Mr. Piyush Agarwal, Senior Managing Director, Mizuho Bank said, "We are pleased to successfully arrange the inaugural Japanese Yen denominated ECB facility for IIFL Finance. This facility will help IIFL to diversify its lender base and borrowing currency. We see good demand in the Japanese market for Indian Corporates and Financial Institutions. IIFL being one of the India's leading retail focused NBFCs, we are happy to be part of its growth journey."
At the end of September 2023, the company at consolidated level has free cash and undrawn lines worth Rs 9,078 crores providing adequate liquidity buffer to services to all commitments for the long-term.
IIFL Finance is one of the largest retail-focused non-banking financial companies in India with over 4,400 branches and 85 lac customers. 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.
Leading rating agency CRISIL upward revised IIFL Finance's outlook to 'Positive' from 'Stable' and reaffirmed the long-term rating at 'CRISIL AA' and short-term rating at 'CRISIL A1+'. In April, Moody's upgraded IIFL Finance's international credit ratings to B1 stable from B2.
In April 2023, IIFL Finance had duly repaid $400 million along with interests it had raised through a maiden dollar bond issue in February 2020.
In June 2023, IIFL Finance raised $175 million through external commercial borrowing (ECB) route which includes $75 million from HSBC, $50 million from Union Bank (Sydney) and $50 million from Bank of Baroda (IFSC unit).
Earlier in March 2023, IIFL Finance had raised $100 million through ECB route which included $50 million in long-term funding from Export Development Canada with co-financing of $50 million from Deutsche Bank (Singapore).
IIFL Finance is one of India's largest retail-focused financial services companies. IIFL Finance's Loan Assets under Management is Rs 73,066 crore as on September 30, 2023. Most importantly, 96% of the book is retail - which is focused on small-ticket loans. IIFL Finance has consistently maintained low level of NPAs over the years of operations and continues to focus on good quality of assets with Gross NPA of 1.84% and Net NPA of 1.02%.
In H1 FY24, IIFL Finance reported a profit after tax of Rs 998.4 crore, up 37% on year with a robust return on equity of 20.1%. It has strong relationship with multiple banks and financial institutions.
Shares of IIFL Finance Limited was last trading in BSE at Rs. 606.65 as compared to the previous close of Rs. 597.35. The total number of shares traded during the day was 15125 in over 927 trades.
The stock hit an intraday high of Rs. 610.45 and intraday low of 592.65. The net turnover during the day was Rs. 9099053.00.