IIFL Finance Plans to Raise ECB Share to 20% of Borrowings by FY27

Mumbai, February 16: IIFL Finance is preparing to increase the share of External Commercial Borrowings and foreign currency borrowings in its overall liability profile to 20 per cent by FY27, up from the current 13 per cent, according to a senior company official.

Managing Director and Founder Nirmal Jain said the company plans to mobilise a substantial amount through these instruments over the next few months as part of its funding strategy.

Current External Borrowing Position​

At present, the company’s standalone total external borrowing stands at Rs 5,937 crore. This includes:

• Rs 2,257 crore in external loans
• Rs 3,680 crore in dollar bonds

Jain noted that External Commercial Borrowings and foreign currency borrowings account for 13 per cent of total borrowings, with a clear roadmap to increase this proportion to 20 per cent in the next fiscal year.

Borrowing Profile in FY26​

According to the company’s investor presentation, total borrowings during the April to December period of FY26 stood at Rs 60,640 crore.

The borrowing mix during this period was as follows:

• 41 per cent through term loans
• 31 per cent through debentures
• 18 per cent through refinance
• 9 per cent via securitisation and other sources

This diversified structure underlines the company’s multi-channel funding approach.

Cost of Borrowing Trends​

In the October to December quarter of FY26, the cost of borrowing increased to 9.28 per cent, compared to 9.15 per cent in the same period a year earlier.

However, on a sequential basis, the borrowing cost declined by 0.10 per cent quarter on quarter, indicating some moderation in funding expenses.

Rs 2,000 Crore Bond Issue Announced​

Separately, IIFL Finance announced its intent to raise up to Rs 2,000 crore through a bond issue. The offering includes a greenshoe option of Rs 1,500 crore.
The bonds carry coupon rates ranging between 8.70 per cent and 9 per cent.
The issue will open for subscription on February 17 and close on March 4.
The bonds have been rated:

• ‘AA’ with Stable outlook by CRISIL
• ‘AA+’ with Stable outlook by Brickwork Ratings

Funding Strategy Aligned with Growth Plans​

With plans to increase the share of External Commercial Borrowings and foreign currency funding, alongside a fresh bond issuance, IIFL Finance is recalibrating its liability mix as it moves toward FY27. The company’s evolving borrowing strategy reflects its effort to balance cost, diversification, and long-term funding visibility.