Fairfax-backed, leading Mumbai-based non-banking financial company (NBFC), IIFL Finance (IIFL), has secured $100 million in long-term funding, jointly, from Export Development Canada (EDC) and Deutsche Bank.
The NBFC secured $ 50 million from EDC and $50 million from Deutsche Bank, respectively. The deal was structured under the aegis of Deutsche Bank as mandated lead arranger, book runner and co-financier. This would also be IIFL’s second loan from EDC. It had previously secured funding of $100 million from EDC in 2019, the statement said.
IIFL Finance, had raised $400 million through its maiden dollar bond issue in February 2020. It was able to buy back the maximum possible amount, as approved by the Reserve Bank of India, with the remaining amount due for maturity later in April 23, according to the statement.
For the NBFC, the replacement cost on the fresh borrowing at a competitive rate is expected to result in significant savings in borrowing costs, as compared to its previous fund raise, a statement said.
Kapish Jain, the Group Chief Financial Officer of IIFL Finance, said, “We are extremely happy with our continuous engagement and partnership with EDC and grateful to them for reposing their confidence in the company. We also thank Deutsche Bank for making this possible as a co-financer. These funds are long-term in nature and will help us further strengthen our ALM position and support our continuous growth across our core businesses.”
According to Rahul Chawla, Co-Head, Investment Bank coverage at Deutsche Bank, India, “As a bank we believe in aiding businesses to expand and grow. NBFCs play a very important role in spreading credit to a hitherto unserved customer segment, both in terms of reach and sectors. We are happy to be partnering with IIFL Finance and supporting them in expanding the reach in the theme of inclusive lending.”
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