Indian diversified financial services company IIFL Finance, has approved the buy-back of its 5.875% dollar bonds due 2023, from its bondholders up to a maximum amount of $50mn in nominal value. IIFL Finance is financing the buyback through an offshore short-term overseas loan facility extended by HSBC. It expects to save 200bps in capital costs through this programme. The 5.875% dollar bonds were issued in February 2020 with IIFL raising $400mn and currently have an amount outstanding of $385mn. The company has a rating of B+ by Fitch with a stable outlook. IIFL is a prominent NBFC in India and operates in the home loan, microfinance, business loan, and gold loan segments. It had loans under management at $6.12bn, and a capital adequacy ratio of 25.4% at end-December 2021.
IIFL Finance dollar bonds were trading marginally higher, its 5.875% 2023 up over 0.13 points to 96.63 yielding 9.25%.
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