IIFL Finance to issue USD 500 million notes at 7.60% coupon
IIFL Finance approved the issuance of USD 500 million fixed rate senior secured notes with a 7.60% coupon and a 3.25-year tenure. The notes, rated B+ by S&P and Fitch, will be listed on India International Exchange IFSC Limited and NSE IFSC Limited. Proceeds will fund onward lending and business growth under the company's Social Finance Framework.

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iifl finance has approved the issuance of USD 500 million fixed rate senior secured notes to support onward lending and business growth. The Finance Committee, acting on delegated powers from the Board of Directors, finalized the pricing, tenure, and other terms for the notes on June 03, 2026. The issuance is part of the company's USD 1,000,000,000 Global Medium Term Note Programme and will be conducted under Regulation S and/or Rule 144A of the U.S. Securities Act 1933.
The notes carry a coupon rate of 7.60% per annum, payable semi-annually on March 10 and September 10 each year, starting March 10, 2027. The instrument has a tenure of 3.25 years, with a date of allotment set for June 10, 2026, and a maturity date of September 10, 2029. Expected issue ratings for the notes are B+ / B+ from S&P and Fitch respectively.
Proceeds from the issuance will be utilized in accordance with IIFL Finance Limited's Social Finance Framework. The funds are earmarked for onward lending and supporting the growth of the company's business, complying with the External Commercial Borrowings (ECB) Regulations as defined in the Offering Circular.
The notes will be listed on the India International Exchange IFSC Limited and NSE IFSC Limited. Security for the notes includes a first ranking pari passu charge over all present and future receivables and assets of the company. This covers accounts, operating cash flows, current assets, book debts, loans, and advances, subject to the Security Coverage Ratio defined in the Offering Circular, excluding certain Excluded Assets.
| Particulars | Terms |
|---|---|
| Type of Instrument | Fixed rate, senior, secured notes |
| Size of the Issue | USD 500,000,000 |
| Tenure | 3.25 years |
| Date of Allotment | June 10, 2026 |
| Date of Maturity | September 10, 2029 |
| Coupon Rate | 7.60% per annum |
| Payment Schedule | Semi-annually on March 10 and September 10 |
| Expected Issue Rating | B+ / B+ (S&P / Fitch) |
| Listing | India International Exchange IFSC Limited, NSE IFSC Limited |
Historical Stock Returns for IIFL Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.04% | +4.28% | +8.68% | -13.16% | +17.36% | +97.08% |
How will the 7.60% coupon rate impact IIFL Finance's cost of capital compared to its existing debt instruments?
What specific sectors or borrower segments will be prioritized for the onward lending funded by this issuance?
How might the B+ credit ratings from S&P and Fitch influence investor demand for the notes?


































