IIFL Finance Limited has informed the Exchange regarding Intimation for issuance of Perpetual Debt Instruments on Private Placement basis
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IIFL Finance Limited has received Finance Committee approval to issue Listed, Unsecured, Non-Convertible Perpetual Debentures (NCDs) on private placement basis. The company plans to issue up to 200 NCDs with a total size of up to INR 200 crore, each with a face value of INR 1 crore. The instruments are perpetual in nature with no fixed maturity date, subject only to a call option exercisable by the company after 10 years with prior RBI approval. The NCDs will be listed on the National Stock Exchange. The coupon rate and exact payment schedule are to be determined as per the Key Information Document. In case of any default in interest or principal payment, an additional 2% p.a. penalty interest will apply.
This issuance will help IIFL Finance raise Tier-1/Tier-2 capital to meet regulatory capital requirements as a Non-Banking Finance Company. Perpetual debentures do not have maturity dates, providing long-term debt funding without repayment pressure, but the cost may be higher than conventional debt.