In March, the Reserve Bank of India imposed a restriction on IIFL Finance, halting its ability to approve and distribute gold loans due to significant supervisory issues. However, this prohibition was lifted in the previous month.
IIFL Home Finance, a subsidiary of IIFL Finance, is set to raise as much as 30 billion rupees (approximately $358 million) through a public bond issuance. This information comes from a draft shelf prospectus submitted by the company on Tuesday.
The bond issue will be managed by Trust Investment Advisors and IIFL Securities. Notably, this offering has received an AA rating from both Crisil and India Ratings.
While specific details regarding the bond issuance are still pending finalization, it marks an important step for IIFL Home Finance in its financial strategy.
Earlier in September, Reuters reported that IIFL Finance aims to secure 100 billion rupees through debt instruments during the October-March timeframe. This move is part of their strategy to rebound following the recent suspension on gold loan approvals.
The earlier ban imposed by the Reserve Bank of India highlighted serious supervisory concerns within IIFL Finance’s operations but has since been resolved with regulatory approval reinstated last month.
This development signals a positive shift for investors and stakeholders involved with IIFL Home Finance as they navigate their recovery path post-restriction.
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