IIFL Finance Completes ₹800 Crore NCD Allotment with Detailed Terms

IIFL Finance has successfully completed the allotment of non-convertible debentures (NCDs) worth ₹800 crore through private placement on December 30, 2025. The Finance Committee of the Board of Directors approved the comprehensive debenture issuance across three distinct series, each designed to meet different investor requirements and tenure preferences.

Debenture Allotment Details

The NCD allotment was structured across three series under the company's D35 and PDI-2 programs, offering investors varied tenure and interest rate options.

Series	Type	Quantity	Face Value	Total Value	Interest Rate	Tenure
D35 Option A-I	Subordinated Redeemable	30,000	₹1,00,000	₹300 crore	9.25% p.a.	7 years
D35 Option A-II	Subordinated Redeemable	40,000	₹1,00,000	₹400 crore	9.30% p.a.	10 years
PDI-2 Option B	Perpetual	100	₹1,00,00,000	₹100 crore	9.90% p.a.	Perpetual
Total	Combined	70,100	Various	₹800 crore	9.25%-9.90%	Mixed

Interest Payment Structure

The debentures feature differentiated interest payment schedules tailored to each series. The D35 Option A-I series offers monthly interest payments starting January 30, 2026, while both D35 Option A-II and PDI-2 Option B series follow annual interest payment schedules beginning December 30, 2026.

Maturity and Redemption Terms

The debenture series have staggered maturity profiles to provide portfolio diversification. The D35 Option A-I series matures on December 30, 2032, while the D35 Option A-II series extends to December 30, 2035. The perpetual debentures under PDI-2 Option B have no fixed maturity but include a call option exercisable by the company after 10 years, subject to RBI approval.

Regulatory Compliance and Listing

All debenture series are structured as subordinated, unsecured, listed, and rated instruments issued in dematerialized form. The debentures will be listed on the National Stock Exchange of India Limited, ensuring liquidity for investors. The issuance complies with SEBI Listing Regulations 30 & 51, with comprehensive disclosure requirements fulfilled.

Default Protection Mechanism

The debentures include investor protection through additional interest provisions. In case of any event of default, including payment delays beyond due dates, the company will pay additional interest at 2.00% per annum over the applicable coupon rate until the default is resolved to the satisfaction of the debenture trustee.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.76%	+6.16%	+4.44%	+28.39%	+46.34%	+451.36%

IIFL Finance Limited has received significant credit rating assignments from India Ratings and Research Pvt. Ltd. for its debt instruments totaling ₹50,000 crores. The company disclosed this information in compliance with SEBI listing regulations.

New Rating Assignments

India Ratings and Research has assigned IND AA/Stable ratings to the following debt facilities for IIFL Finance Limited:

Instrument Type	Amount	Rating Assigned
Bank Loan Facilities	₹20,000 crores	IND AA/Stable
Non-Convertible Debentures	₹30,000 crores	IND AA/Stable

Rating Affirmations

In addition to the new assignments, India Ratings has affirmed its existing ratings on previously rated instruments. The agency has maintained IND AA/Stable ratings on ₹55,500 crore facilities, which include:

Bank loan facilities
Non-Convertible Debentures
Other debt instruments

Regulatory Compliance

The disclosure was made in accordance with SEBI listing regulations, ensuring transparency and compliance with regulatory requirements.

Rating Implications

The IND AA/Stable ratings assigned and affirmed by India Ratings reflect the agency's assessment of IIFL Finance's strong creditworthiness. These ratings may potentially enhance the company's ability to access funding and strengthen its financial position in the market.

Investors and stakeholders can access the detailed rating rationale on India Ratings' official website for a comprehensive understanding of the rating decision process and methodology.