IIFL Finance, one of India’s Non-Banking Financial Companies, opened a public issue of bonds on March 03, 2021.
The bonds offer up to 10.03% yield and high degree of safety making it one of the best debt investment products in the current scenario with almost double the interest rate offered by bank fixed deposit, liquid funds etc.
The IIFL Bonds offer highest yield of 10.03% p.a. for tenor of 87 months. The NCD is available in various options like monthly, annual, and at maturity.
In the current scenario, the rate of interest offered by IIFL Finance bonds is very attractive compared with other debt products.
Liquid funds offer average net yields of 2.8%-3%, ultra-short-term funds offer average net yields of around 3-3.5%., short-term funds offer average net yield is around 4%-4.25%, while banks are currently offering an interest of around 5.1% for a 3 year fixed deposit.
This 10.03% rate is also getting locked in for 87 months. The bonds issued by Fairfax and CDC Group backed IIFL Finance aims to raise a minimum of Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore). Mr. S Hariharan, Director, IIFL said, “The funds raised will help IIFL Finance to meet credit needs of underserved population who are primarily our customers.”