IIFL Finance Raises USD 500 Million via Senior Secured Notes

$IIFL IIFL Finance Limited has approved the issuance of USD 500 million fixed-rate senior secured notes to fund onward lending and business growth. Finalized by the Finance Committee on June 3, 2026, the issuance is part of the company’s USD 1 billion Global Medium Term Note (GMTN) Programme and will be offered under Regulation S and/or Rule 144A. Key Transaction Terms: Issue Size USD 500 Million Coupon Rate 7.60% p.a. (payable semi-annually) Tenure 3.25 years Allotment Date June 10, 2026 Maturity Date September 10, 2029 Expected Ratings B+ (S&P) / B+ (Fitch) Strategic Rationale & Use of Proceeds: Business Growth: Proceeds will be utilized for onward lending to support the company's expanding loan book, in compliance with External Commercial Borrowing (ECB) regulations. ESG Alignment: The issuance aligns with IIFL Finance’s Social Finance Framework, highlighting its commitment to socially responsible lending. Security and Listing: Collateral: The notes are backed by a first-ranking pari passu charge over all present and future receivables and assets of the company, including operating cash flows, book debts, loans, and advances. Listing: The notes will be listed on the India International Exchange (INX) IFSC and NSE IFSC. Outlook: This offshore borrowing diversifies IIFL Finance's liability profile and provides a stable, medium-term funding cushion at a competitive 7.60% coupon. The strong asset backing and alignment with social finance frameworks are expected to appeal to global institutional investors, supporting the company's continued credit growth in the domestic market.