Business
IIFL Finance nets $500 million in overseas bond sales
This is the first dollar bond issued out of India since January this year when ReNew Energy raised $600 million by issuing a five year bond. Since then though geopolitical volatilities more particularly due to the US-Israel attack on Iran has meant that the high overseas yields were beyond the expectations of Indian companies looking to raise funds from abroad.
Nirmal Jain, founder and managing director at IIFL Finance said the successful issue comes at a time of heightened volatilities, pressure on the rupee and capital outflows from India.
IIFL Finance successfully raised $500 million through international dollar bonds, marking the first such issuance from India since January. Priced at 7.6%, the 3.25-year bond attracted significant investor interest despite geopolitical volatilities. Proceeds will fund lending to economically weaker sections, including MSMEs and gold loans.
“It’s a positive thing at a time when there has been no issue from India for a long time. This is also the first social issue from IIFL Finance. The proceeds of this issue will be used to lend to economically weaker sections of society which includes MSMEs, gold loans and loan against property,” Jain said.
Prathamesh Sahasrabudhe, MD & Head, Capital Markets, India, Standard Chartered Bank said, “This marks the market reopening dollar bond transaction for Indian issuers since the onset of the West Asia crisis.
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