IIFL Finance Limited has repurchased and settled USD 1,369,526.04 of its Senior Secured Fixed Rate Notes due 2028. The transaction, which includes accrued interest, was executed at a premium and reduces the total principal outstanding of USD 413,325,000 issued under Regulation S and Rule 144A of the U.S. Securities Act 1933.

The repurchase was conducted in compliance with the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, and the Reserve Bank of India Master Direction regarding External Commercial Borrowings. The company confirmed the transaction remained within the limit approved by its Authorised Dealer bank.

Key Details of the Repurchase

The following table outlines the specifics of the transaction:

The disclosure was submitted to the BSE Limited and The National Stock Exchange of India Limited pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was also filed with the India International Exchange (IFSC) Limited and NSE IFSC Limited under Regulation 116 of the International Financial Services Centres Authority (Listing) Regulations, 2024.

IIFL Finance has laid out a comprehensive growth roadmap for FY'27, anchored by artificial intelligence adoption and improved operating efficiency. The company projects a 17% to 18% rise in its home finance book and assets under management (AUM), supported by over 30% growth in disbursements during the same period.

Growth Projections for FY'27

The company's forward-looking targets reflect confidence in its core home finance business and broader lending operations. The projected disbursement growth of over 30% is expected to be a key driver of AUM expansion. AI-driven efficiencies and operational improvements are cited as critical enablers of this sustained growth trajectory.

Credit Cost Outlook and Asset Quality

IIFL Finance expects credit costs to remain in the range of 1.5% to 1.7% for FY'27. The company has identified elevated gross non-performing assets (GNPA) in the housing finance segment's Micro LAP and BFC portfolios as areas requiring active resolution. Management anticipates a significant drop in credit costs over the two years following FY'27 as these portfolio-level challenges are addressed.

ROA Improvement and Operating Efficiency

IIFL Finance is targeting a 50 basis points improvement in return on assets (ROA), with the improvement attributed to two distinct drivers. Lower credit costs are expected to contribute 40-50 BPS to the ROA gain, while better operating costs and net interest margin (NIM) gains are projected to add a further 20-30 BPS.

On the cost efficiency front, OPEX to AUM is expected to be in the range of 3.3% to 3.4%, with the company projecting a gradual decline over the next 2-3 years. This improvement is anticipated despite the company's plan to open 500 new branches during the current year, with AI integration and business growth plans cited as the primary levers for cost optimisation.

Strategic Enablers

The company's growth and efficiency targets are underpinned by its ongoing investments in artificial intelligence and branch network expansion. While the addition of 500 new branches represents a significant operational scale-up, management expects AI-driven efficiencies to more than offset the associated cost pressures, enabling a steady improvement in the OPEX to AUM ratio over the medium term.