IIFL taps Rs 2000 crore NCD issue to diversify fund sources
The Rs 2000 crore India Infoline Finance (IIFL) secured and non-secured non-convertible debentures (NCD) issue at a high coupon rate is carried to diversify the sources of fund after commercial paper market squeezed post IL&FS crisis, a top company official said.
"There will be rise in cost. But, we want to diversify the sources of fund even there will be rise in average cost of fund," IIFL group managing director R Venkataraman told PTI on Tuesday.
The NBFC was trying to reduce its dependence on commercial paper which has a share of 24 per cent out of its total fund pool.
The average cost of fund is presently at 8.64 per cent as on H1FY19'. Company estimates the additional rise in cost will be 10-15 basis points post NCD issue.
The issue offering coupon rate of between 9.5 and 10.5 per cent per annum depending on tenure opened on Tuesday will stay open till February 20.
The base issue size is Rs 250 crore with greenshoe option of Rs 1750 crore.
Owing to rise in cost