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IIFL Finance to issue Rs 1000 crore bond at 10.5 pc interest rate
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IIFL Finance to issue Rs 1000 crore bond at 10.5 pc interest rate

Agency News

Ahmedabad, Aug 5 : IIFL Finance, a non-banking Mumbai-based financial company, will open a public issue of bonds from Tuesday, to offer interest rate of 10.5 per cent, the financial company's vice president, Rajiv Joshi, said on Monday.

Addressing a press conference Rajiv Joshi, Vice President, IIFL Finance, which has its highest number of around 300 branches in Gujarat, said that reputed credit rating agency, CRISIL has rated the instrument as AA/Stable, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.

"Compared to bank fixed deposits of less than 6 per annum, IIFL bonds offer at least 4 per cent points higher to retail investors. IIFL bonds offer attractive yields to retail investors at a time when RBI is likely to cut interest rates further and stock markets are giving negative returns," he added.

To a query as to how the company would be able to give such a high return at a time when slow down is seemingly the order of the day, Mr Joshi said that the company was in to gold loan, housing loan and micro finance businesses, which still yield very good return, added that we have issued bonds at even higher rates in the past and successfully bought them back.

"Through our strong physical presence of 1,947 branches across India and a well-diversified portfolio, we are able to meet the credit requirement of various segments of underserved population. The funds raised will help us in expanding our operation in more such areas,'' Mr Joshi said.(UNI)