Indian gold loan financier IIFL Finance has accepted bids worth $300 million for a four-year social dollar bond, in its second such fundraise in less than a month, two merchant bankers said on Friday.
The non-banking finance company will offer a yield of 7.75% to investors, slightly below the initial price guidance at about 7.85%, the bankers added, requesting anonymity as they are not authorised to speak to the media.
IIFL Finance did not reply to a Reuters email seeking comment.
In early June, IIFL Finance raised $500 million through a sale of social bonds maturing in three years and three months at a coupon of 7.60%.
The latest fundraise would help the non-bank lender diversify its sources of funding, as it aims to increase the share of external borrowings to 20% from around 13% currently.
The notes are secured against the issuer’s receivables and assets. The proceeds will be used for lending and business growth, in line with the company’s social finance framework.
Reuters
