Non-banking finance company IIFL Finance has raised $175 million through an external commercial borrowing (ECB) route in the month of June 2023, the company said in a regulatory filing. The NBFC has raised $75 million from HSBC, $50 million from Union Bank (Sydney) and $50 million from Bank of Baroda (IFSC unit), it further stated.
The funds were raised at SOFR plus 200 basis points offering competitive sources of funds to the rapidly growing NBFC. Additionally, IIFL Finance had also raised $100 million in March 2023, taking the total borrowing since March 2023 to $275 million. IIFL Finance had raised $100 million on March 31, 2023 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).
“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. This also helps in diversifying our borrowing sources and lower our overall borrowing costs,” said Kapish Jain, Group CFO, IIFL Finance Limited.
At the end of March 2023, the company at consolidated level has free cash and undrawn lines worth Rs 9,356 crore providing adequate liquidity buffer to service all commitments for the long-term.
IIFL Finance has over 4000 branches and 85 lakh 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. In FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore, up 35 per cent on-year with a robust return on equity of 19.9 per cent.