IIFL Finance plans to raise $400 million in ECBs

Mumbai: IIFL Finance, a non-bank lender, plans to raise up to $400 million in external commercial borrowings (ECB), multiple global banking sources told ET, after an earlier unsuccessful attempt in March to raise a similar amount in the immediate aftermath of the Iran conflict.

Bankers said the company sought to tap the markets despite no immediate end to the West Asia crisis as investor sentiment has improved significantly compared to March, when the outbreak of the war had weighed on market confidence and risk appetite. Since then, conditions have stabilised, aiding a recovery in outlook for the company, which is now seeing faster growth supported by strong demand in its gold loan segment-the company's primary growth engine.

The proposed funding is being arranged by Standard Chartered, JPMorgan and HSBC, said the sources cited above.

The company is meeting potential backers in Singapore, Hong Kong and other global markets this week to gauge investor interest and decide on the final size, tenor and pricing for the instruments.

IIFL Finance saw its consolidated assets under management (AUM) rising to ₹1,08,180 crore, up 10% quarter-on-quarter and 38% year-on-year at the end of March 2026. Growth has been led by its gold loan franchise, where AUM surged to ₹52,581 crore, jumping 150% year-on-year and 21% sequentially, emerging as the primary driver.

The company is looking to diversify its borrowing profile by borrowing overseas. In an interview in February Nirmal Jain, managing director of the company, had told ET that the company was planning to raise $500-750 million in ECBs or dollar bonds to diversify funding and reduce reliance on banks.

The fundraise could be priced Secured Overnight Financing Rate (SOFR) plus 225 basis points. This will be similar to the recent $50 million it raised in a three-year loan at SOFR+225 bps, one of the bankers said. This was arranged by HSBC, said the banker cited immediately above.

One basis point is a hundredth of a percentage point.

The SOFR is now the reference rate for dollar-denominated loans and derivatives.

Spokespersons of IIFL and JP Morgan did not respond to requests for comment while HSBC, Standard Chartered Bank declined to comment.