IIFL Finance Limited has successfully completed the allotment of non-convertible debentures worth ₹650 crores under its Series D34 offering. The Finance Committee of the Board of Directors approved this significant debt issuance on December 16, 2025, marking another milestone in the company's fundraising activities.

Debenture Allotment Details

The company allotted 6,500 senior, unsecured, listed, rated, redeemable non-convertible debentures on a private placement basis. Each debenture carries a face value of ₹1,00,000, bringing the total issue size to ₹650 crores. The debentures have been issued in dematerialized form under Series D34, ensuring efficient trading and settlement.

Tenure and Payment Schedule

The non-convertible debentures carry a tenure of 3 years from the deemed date of allotment. The structured payment schedule includes regular interest payments and principal redemption at maturity.

Interest Payment Schedule:

• First Payment: December 16, 2026
• Second Payment: December 16, 2027
• Final Payment: December 18, 2028

Principal Redemption:

• Maturity Amount: ₹1,00,000 per debenture plus accrued interest
• Redemption Date: December 18, 2028

Default Protection Mechanism

The debentures include robust investor protection measures in case of payment delays. If the company delays interest or principal payments for more than three months from the due date, it will pay additional interest at 2.00% per annum over and above the coupon rate. This additional interest applies from the date of default until the event is cured to the satisfaction of the Debenture Trustee acting on debenture holders' instructions.

Regulatory Compliance

The allotment was conducted in accordance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously intimated the exchanges about the proposed issuance on December 11, 2025, maintaining full regulatory compliance throughout the process.

This debenture issuance represents IIFL Finance Limited's continued efforts to diversify its funding sources and strengthen its capital base for business expansion and operational requirements.

IIFL Finance received a significant boost to its credit assessment as S&P Global Ratings upgraded the company's rating outlook to Positive from Stable while maintaining its existing credit ratings. The revision reflects improved credit prospects driven by the company's gold loan market share recovery and anticipated operational improvements.

Rating Revision and Rationale

S&P Global Ratings made several key rating decisions for IIFL Finance Limited, with the outlook upgrade supported by specific performance expectations:

The rating agency cited the recovery in IIFL Finance's gold loan market share as a key factor supporting the positive outlook. S&P noted that this comes a year after a central bank embargo on the company sanctioning or disbursing fresh gold loans was lifted. The company has grown its gold loans assets under management by 2.20x in the 12 months to September 30, 2025, making its market share in the gold loan segment second only to Muthoot Finance Limited among non-bank financial institutions in India.

Financial Performance Projections

S&P Global Ratings provided detailed financial expectations for IIFL Finance over the next few years:

S&P anticipates that IIFL Finance's credit costs will peak in fiscal 2026, reflecting ongoing stress in the microfinance segment and the company's past offering of riskier products. The company has since discontinued these products and reduced exposure to microfinance loans, leading to expected gradual improvement in credit costs.

Market Position and Growth Drivers

The rating agency highlighted several factors supporting IIFL Finance's strengthening position in gold-backed financing. The company is benefiting from elevated gold loan prices and robust consumer demand, supported by its extensive branch network of 4,904 branches across India. S&P expects the company to sustain its growth in gold-backed financing, with very strong capitalization levels supporting this expansion.

Regulatory Compliance and Disclosure

IIFL Finance communicated this rating development to both BSE Limited and The National Stock Exchange of India Limited in compliance with regulatory requirements. The disclosure was made pursuant to provisions of Regulations 30 and 51 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company serves over 8 million customers through its pan-India network and digital channels, offering a wide spectrum of financial products including home loans, gold loans, business loans, microfinance, capital market finance, and developer construction finance.