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Housing Finance Company IIFL Home Finance Ltd. to Issue SecuredRedeemable Non-Convertible Debentures Tranche II Issue to Open on 08 December, 2021 Effective Annualized Yield up to 8.76% p.a.

Mumbai | Published On 2021-12-06T11:51:10IST | Press Release | 1 min read
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 Housing Finance Company IIFL Home Finance Ltd. to Issue SecuredRedeemable  Non-Convertible Debentures  Tranche II Issue to Open on 08 December, 2021 Effective Annualized Yield up to  8.76% p.a.

∙Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of a Face Value of ₹1,000 each. Minimum Application Size: ₹10,000 (10 Secured NCDs across all series) ∙The Tranche II Issue includes a Base Issue Size for an amount of ₹100 crores (“Base Issue Size”) with an option to retain oversubscription up to ₹900 crore aggregating up to ₹1,000 crores (“Tranche II Issue”)

∙Shelf Limit: ₹5000 crores

∙Rated as CRISIL AA/Stable by Crisil Ratings Limited and BWR AA+/Negative (Assigned) by Brickwork Ratings India Private Limited

∙Effective annualized yield up to 8.76% p.a. #

∙ Tranche II Issue opens on December 8, 2021 and closes on December 28, 2021*

∙ NCDs are proposed to be listed on BSE and NSE (collectively, “Stock Exchanges”).

#For further details please refer Shelf Prospectus dated June 29, 2021 and Tranche II Prospectus dated

December 03, 2021

*Tranche II Issue may close on such earlier date or extended date as may be decided by the Board of Directors/ or the Finance Committee. In the event of an early closure or extension of the Tranche II Issue; Our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a reputed daily national newspaper on or before such earlier or extended date of Issue Closure.

Mumbai, 6th December, 2021: Retail focused and technology driven Housing Finance player, IIFL Home Finance Ltd. (“IIFL HFL”/ “Company”) has announced the opening of its public issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of the face value of ₹1,000 each. The Tranche II Issue includes a Base Issue Size for an amount of ₹100 crores (“Base Issue Size”) with an option to retain oversubscription up to ₹900 crore aggregating up to ₹1,000 crores (“Tranche II Issue”). The Secured NCD issue offers various options for subscription with coupon rates ranging from 8.20% to 8.75% per annum. The Tranche II Issue opens on December 08, 2021 and closes on December 28, 2021, with an option of early closure or extension.

The Secured NCDs bear a fixed rate of interest under eight different series and have been rated “CRISIL AA/Stable” and “BWR AA+/ Negative (Assigned)” indicates that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings of the Company (at least 75%) - and the rest (maximum up to 25%) for general corporate purposes. As on September 31, 2021 its CRAR, in accordance with the Reformatted Financial Statements this was at 30.75%.

The terms of each series of Secured NCDs, offered under Tranche II Issue are set out below:

*All Categories of Investors in the proposed Issue who are also holders of 1.NCD(s)/Bond(s) previously issued by our Company i.e. IIFL Home Finance Limited and /or Our Promoter, IIFL Finance Limited, as the case may be and/or

2.Equity shareholder(s) of IIFL Finance Limited, as the case may be, on the Deemed Date of Allotment

• Applying in Series I, Series III, Series IV, Series VI, and/or Series VII shall be eligible for additional incentive of 0.25% p.a. provided the Secured NCDs issued under the proposed Tranche II Issue are held by the investors on the relevant Record Date applicable for payment of respective coupons, in respect of Series I, Series III, Series IV, Series VI, and/or Series VII.

• Applying in Series II, Series V and/or Series VIII, the maturity amount at redemption along with the additional yield would be ₹ 1,277.60 per Secured NCD, ₹ 1,521.45 per Secured NCD and/or ₹ 1,830.00 per Secured NCD respectively provided the Tranche II Secured NCDs issued under the proposed Issue are held by the investors on the relevant Record Date applicable for redemption in respect of Series II, Series V and/or Series VIII.

The company’s main focus on providing loans to first time home buyers in the Economically Weak Society and Lower Income Group segment in the suburbs of Tier 1 cities, Tier 2 cities and Tier 3 cities in India where the collateral is a proposed self-occupied residential property. As on September 30, 2021 it has served over 157,000 customers, of which 52.77% were self-employed and 47.23% were from the salaried class.

Its Asset Under Management saw a CAGR growth of 7%, where it grew from ₹18157.83 crores as of March 31, 2019 to ₹ 21474.26 crores as of September 30, 2021. The Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited*, ICICI Securities Limited, Equirus Capital Private Limited and Trust Investment Advisors Private Limited

* IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.

DISCLAIMER: IIFL HOME FINANCE LIMITED (“Company”), subject to market conditions and other considerations is proposing a public issue of secured, subordinated, redeemable, non-convertible Debentures (“Secured NCDs”) and has filed the Tranche II Prospectus dated December 3, 2021 ( “Prospectus”) with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Prospectus is available on the Company’s website www.iiflhomeloans.com; on the website of the stock exchanges www.nseindia.com, www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trustgroup.in and www.equirus.com. Investors proposing to participate in the Tranche II Issue, should invest only on the basis of the information contained in the Prospectus. Investors should note that investment in Secured NCDs involves a high degree of risk and for details relating to the same, please refer to Prospectus, including the section on “Risk Factors” beginning on page 34 of the Prospectus.

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE Limited.

DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of National Stock Exchange of India Limited.

DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the BSE to use their network and software of the Online system should not in any way be deemed or construed as compliance with various statutory requirement approved by the Exchange; nor does it any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of the Company, its promoters, its management or any scheme or project of this Company.

DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the NSE to use their network and Online Platform for facilitating applications for public issue of NCDs shall not in any way be deemed or construed as compliance with various statutory and other requirements by the Company; LMs are cleared or approved by NSE; nor does it warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of the Issuer, its promoters, its management or any scheme or projects of the Issuer

DISCLAIMER CLAUSE OF BRICKWORK: BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR’s best judgement are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA). BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR. The ratings assigned by BWR are only an expression of BWR’s opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument. BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgement obtained from the user’s financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same. BWR’s ratings reflect BWR’s opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

DISCLAIMER CLAUSE OF CRISIL: CRISIL Ratings Limited (CRISIL Ratings) has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by CRISIL Ratings from sources which it considers reliable (Information). A rating by CRISIL Ratings reflects its current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL Ratings. CRISIL Ratings does not guarantee the completeness or accuracy of the information on which the rating is based. A rating by CRISIL Ratings is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL Ratings especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary permission and/or registration to carry out its business activities in this regard.

About IIFL Home Finance:

Incorporated in 2006 and registered in 2009 with National Housing Bank (NHB), IIFL Home Finance Limited is a wholly-owned subsidiary of IIFL Finance Limited. The Company is one of India’s leading housing finance companies and is a preferred choice for affordable home loan requirements. Through their affordable home loans, IIFL Home Finance makes people's aspirations of owning a home a reality. As a technology driven housing finance player, we endeavour to make our customer experience as seamless as possible. We have made the entire life cycle of our housing loans i.e., from origination to closure, completely digitised. We have state-of the-art IT infrastructure which has helped in reducing costs, real time analysis of customer data, improving our control and underwriting functions, while increasing customer reach and distribution capability.

For news and updates, visit https://www.iifl.com/home-loans and follow us on twitter at https://twitter.com/IIFLHomeLoan

For media queries, write to corpcom.hfc@iifl.com