IIFL Finance to raise up to $750 million via ECBs, dollar bonds

IIFL Finance, supported by Fairfax, is set to raise between $500 million to $750 million (approximately ₹4,547-6,820 crore) through external commercial borrowings (ECBs) and dollar bonds in March. This initiative aims to diversify its funding sources and mitigate reliance on traditional bank loans while supporting its growth strategy. Nirmal Jain, the managing director of IIFL Finance, indicated that discussions are ongoing with existing investors and banks from nations such as Singapore and Taiwan. The fundraising is expected to be completed by the third week of March and will involve a mix of dollar loans and foreign currency social bonds. The move comes in light of recent changes by the Reserve Bank of India, which has increased the borrowing limits for ECBs from $750 million to $1 billion, making it easier for Indian firms to raise capital. IIFL Finance has previously engaged with global banks like Deutsche Bank and Mizuho Bank in its debt issues, and the company is also focusing on increasing the proportion of bond issuance in its funding structure. Following a retail bond issue launched on February 17 for ₹2,000 crore, IIFL is also aiming to secure an additional ₹1,000 crore from institutional investors through private placements.