IIFL Finance Opens Rs. 2,000 Crore Bond Issue with Attractive 9% Yield

Chennai, February 16, 2026: IIFL Finance Limited, one of India’s leading non-banking financial companies (NBFCs), has announced the launch of a public issue of secured redeemable non-convertible debentures (NCDs), opening on Tuesday, February 17, 2026. The base issue size is ₹500 crore, with a green-shoe option to retain oversubscription up to ₹1,500 crore, aggregating to a total of ₹2,000 crore. The proceeds from the issue will be utilized for business growth and capital augmentation.

(L to R) S.Hariharan, Director, IIFL Capital; T.G.Karthik, Zonal Head, IIFL Finance

The NCDs offer an effective yield of up to 9% per annum, with tenure options of 24 months, 36 months, and 60 months. Investors can choose from multiple interest payment options, including monthly, annual, and cumulative (payable at maturity). The proposed issue has been rated CRISIL AA/Stable by CRISIL Ratings and BWR AA+ (Stable) by Brickwork Ratings, indicating a high degree of safety regarding timely servicing of financial obligations and very low credit risk.

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Commenting on the issue, Nirmal Jain, Founder and Managing Director of IIFL Finance, said, “IIFL Finance is among India’s leading NBFCs, with a strong nationwide presence and a diversified retail portfolio serving the credit needs of 4.6 million largely underserved customers. The proposed fund raise will enable us to further expand credit access while diversifying our funding sources. Over the years, we have built a strong track record of raising funds through bonds and ensuring timely repayment of principal and interest.”

As of December 31, 2025, the company reported consolidated loan assets under management (AUM) of ₹98,336 crore. It continues to maintain strong asset quality, with a Gross Non-Performing Asset (NPA) ratio of 1.60% and Net NPA of 0.75% of its consolidated loan book. Additionally, 83.61% of the consolidated loan book remains secured with adequate collateral, further mitigating risk.

For Q3 FY26, the company reported a profit after tax (PAT) of ₹501.3 crore, registering a 514% year-on-year growth. For the nine months ended FY26, PAT stood at ₹1,193.5 crore, reflecting a 265% year-on-year increase. IIFL Finance also maintains strong relationships with multiple banks and financial institutions to support its diversified funding strategy.

As on December 31, 2025, the company operated through a widespread network of 4,761 branches across India and employed a workforce of 36,786 employees on a consolidated basis.

The lead managers to the issue are Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and IIFL Capital Services Limited. The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to investors.

The NCDs will be issued at a face value of ₹1,000 each, with a minimum application size of ₹10,000 across investor categories. The public issue will remain open from February 17, 2026 to March 4, 2026, with an option for early closure. Allotment will be made on a first-come, first-served basis.

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