IIFL Finance gets funding from Deutsche Bank and Export Development Canada

IIFL Finance, an Indian non-banking financial company (NBFC), has secured long-term joint funding of $100 million from Deutsche Bank and Export Development Canada (EDC).

IIFL Finance, which is backed by Fairfax, has obtained a sum of $50 million through Export Development Canada and $50 million from Deutsche Bank. The transaction was arranged under the auspices of Deutsche Bank as mandated lead arranger, bookrunner, and co-financier.

Rahul Chawla — Deutsche Bank India Co-Head, Investment Bank coverage said: “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.”

It would represent IIFL Finance’s second loan via Export Development Canada. The company had previously secured an amount of $100 million in funding in 2019 from the Canadian trade credit insurance company.

Via its first dollar bond offering in early 2020, IIFL Finance raised $400 million. It was able to purchase back the maximum possible amount in accordance with the approval of the Reserve Bank of India, with the remaining balance due to mature on 23 April 2023.

For the Indian NBFC, the replacement cost of the new borrowing at a fair rate is anticipated to bring substantial savings on the cost of borrowing, in comparison to the previous capital raising.

Kapish Jain — IIFL Finance Group Chief Financial Officer 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.”