India's IIFL Finance to Reissue 2028 Dollar Bonds

India's IIFL Finance Limited is set to reissue 2028 dollar bonds, according to sources familiar with the matter. The move comes as the company seeks to diversify its funding sources and capitalize on favorable market conditions. The bond issuance is expected to raise around $400 million, with a tenure of approximately three years.

The bond issuance is part of IIFL Finance's strategic efforts to optimize its financial structure and access overseas capital markets. By leveraging the Reserve Bank of India's external commercial borrowing program, the company aims to secure competitive financing options and support its growth trajectory.

The successful lifting of the ban on IIFL's gold financing business by the RBI in September 2024 is likely to have boosted investor confidence in the company's prospects. This, coupled with the company's resilient business model, robust processes, and strong risk controls, is expected to enhance the appeal of the bond issuance among global institutional investors.



The bond offering is expected to attract a diverse range of sophisticated investors, with high-quality fund managers accounting for a significant portion of the allocation. The competitive pricing of the bond, coupled with the strong demand and oversubscription witnessed in the company's previous bond issuance, is likely to contribute to a positive reception among investors.



In conclusion, IIFL Finance's decision to reissue 2028 dollar bonds is driven by its strategic objectives of diversifying funding sources, optimizing its financial structure, and leveraging favorable market conditions. The bond issuance is expected to be well-received by global institutional investors, potentially leading to a tightening of pricing, increased allocation to high-quality investors, and positive market sentiment. As the financial landscape continues to evolve, IIFL Finance's pursuit of international funding underscores its resilience and adaptability in navigating challenges and seeking opportunities in the dynamic financial ecosystem.