By Dharamraj DhutiaMUMBAI, – Indian gold loan financierIIFL Finance has accepted bids worth $300 million for a four-year social dollar bond, in its second such fundraise in less than a month, two merchant bankers said on Friday.The non-banking finance company will offer a yield of 7.75% to investors, slightly below the initial price guidance at about 7.85%, the bankers added, requesting anonymity as they are not authorised to speak to the media.IIFL Finance did not reply to a Reuters email seeking comment.In early June, IIFL Finance raised $500 million through a sale of social bonds maturing in three years and three months at a coupon of 7.60%.
The latest fundraise would help the non-bank lender diversify its sources of funding, as it aims to increase the share of external borrowings to 20% from around 13% currently.The notes are secured against the issuer’s receivables and assets. The proceeds will be used for lending and business growth, in line with the company’s social finance framework. (Reporting by Dharamraj Dhutia; Editing by Eileen Soreng)
