IIFL Home Finance Unsecured Subordinated Redeemable Non-Convertible Debentures (Unsecured NCDs) Tranche I Issue Open, Effective Annualized Yield upto 10.03% p.a.
Chennai, 6 July, 2021: Retail focused and technology-driven Housing Finance Company, IIFL Home Finance Ltd (“IIFL HFL”) has announced the opening of its public issue of Unsecured Subordinated Redeemable non-convertible debentures (“Unsecured NCDs”) of the face value of Rs. 1,000 each.
The Tranche I Issue includes a Base Issue Size for an amount of Rs. 100 crores (“Base Issue Size”) with a green shoe of up to Rs. 900 crore aggregating up to Rs. 1,000 crores (“Tranche I Issue”). The NCD issue offers various options for subscription with coupon rates ranging from 9.60% to 10.00% per annum. The Tranche I Issue opens on July 6, 2021 and closes on July 28, 2021, with an option of early closure or extension.
The Unsecured NCDs bear a fixed rate of interest under three different series and have been rated “CRISIL AA/Stable” and “BWR AA+/ Negative (Assigned)” indicates that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
Net proceeds of the Issue will be utilized for for the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of our Company and balance will be utilised for General Corporate Purposes.
As on March 31, 2021 its CRAR – Tier I capital, in accordance with the Reformatted Financial Statements was at 19.61%
The terms of each series of Unsecured NCDs, offered under Tranche I Issue are set out below:
|Frequency of Interest Payment||Annual||Monthly||At Maturity|
|Minimum Application||(₹10,000, 10 Unsecured NCDs) across all Series|
|Face Value/ Issue Price of NCDs (₹/ NCD)||₹1,000|
|In Multiples of thereafter (₹)||₹1,000 (One Unsecured NCD)|
|Tenor (in months)||87||87||87|
|Coupon (% per annum) for NCD Holders in all Category||10.00%||9.60%||NA|
|Effective Yield (% per annum) for Unsecured NCD Holders in all Category||10.00%||10.03%||10.02%|
|Mode of Interest Payment||Through various mode available|
|Amount (₹ / NCD) on Maturity for Unsecured NCD Holders in all Category||1,000||1,000||2,000|
|Put and Call Option||NA||NA||NA|
The Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited*, ICICI Securities Limited, Trust Investment Advisors Private Limited and Equirus Capital Private Limited
* IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.
IIFL Home Finance Limited, subject to market conditions and other considerations is proposing a public issue of unsecured subordinate redeemable non-convertible debentures (“NCDs”) and has filed the Shelf Prospectus dated June 29, 2021 and the Tranche I Prospectus dated June 29, 2021 (“Prospectus”) with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus and Tranche I Prospectus both dated June, 2021 are available on our website www.iifl.com/home-loans, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trustgroup.in and www.equirus.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Shelf Prospectus and Tranche I Prospectus. Investors should note that investment in NCDs involves a high degree of risk and for details relating to the same, please refer to Prospectus, including the section on “Risk Factors” beginning on page 24 of the Shelf Prospectus.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE.
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DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in anyway be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of the NSE.
DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of NSE.
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