Gold loan financier IIFL Finance plans to raise up to $750 million through a combination of debut dollar-denominated social bonds and an overseas loan in March, according to reports from The Hindu BusinessLine. The total fundraise could range between $500 million and $750 million, with the break-up of quantum not yet finalised. The tenor of both the bond and loan will be between three to five years.
The company has already received certification for issuing social bonds and is in talks with foreign lenders globally to proceed with the plan before the end of this financial year, as reported by The Hindu BusinessLine. A social bond is a debenture with ring-fenced proceeds, meaning funds must be used solely to finance or refinance projects delivering clear, measurable social outcomes. One of the primary use-of-proceeds for the social bond will be lending to women entrepreneurs.
In January, IIFL Finance managing director Nirmal Jain stated the company plans to raise approximately ₹40-50 billion ($438-$547 million) through external commercial borrowings over the next six months, potentially through multiple bilateral transactions, according to The Hindu BusinessLine. The company's broader strategy aims to gradually diversify its funding mix, with foreign currency borrowings including ECBs or dollar bonds forming around 20% of total borrowings over time.
As of December 31, IIFL Finance's assets under management (AUM) stood at ₹490.27 billion, significantly higher than ₹275.08 billion at the end of March 2025, as reported by The Hindu BusinessLine. Gold loans constituted 89% of AUM, followed by unsecured loans at 8%. The company provides gold loans, home loans, affordable housing loans and secured business loans among others.
The company is currently in the process of raising ₹20 billion through its biggest ever rupee public issue, according to The Hindu BusinessLine. IIFL Finance aims to diversify its sources of funding, improve resilience and help drive business growth through these fundraising initiatives, as stated by Jain in January conversations with The Hindu BusinessLine.
