MUMBAI: Non-banking lender IIFL Finance is looking to raise up to Rs 1,000 crore through a domestic bond sale this month. The issue, which comes in times of liquidity stress, has been priced at similar levels as the one in January when it had raised Rs 1,200 crore, offering a coupon up to 10.5 percent, the company said on Monday.
Chief executive Sumit Bali exuded confidence that despite the elevated cost, they will be able to maintain net interest margins at 7 percent because of its focus on retail.
It is looking to raise Rs 100 crore with a green-shoe option to raise Rs 900 crore more. The tenor of the instrument is up to 69 months. The company did not specify a date for hitting the market. "The company has a loan book of Rs 35,000 crore, which grew 7.6 percent in March and at a muted 1.4 percent in the December 2018 quarter," Bali said.
The issue constitutes 23 percent of the company's borrowings, Bali said, adding the rest of the money comes from banks and mutual funds. The IIFL issue comes at a time when rival JM Financial is also eyeing to raise up to Rs 500 crore from an issue that opens Tuesday and closes on August 30.