DLA Piper advises IIFL Finance on its EMTN to GMTN programme conversion and its USD325 million note issue

DLA Piper has advised IIFL Finance, a leading financial corporation in India specializing in gold financing, on the conversion of its Euro Medium Term Note (ETMN) Programme to a Global Medium Term Note programme (GMTN). Following the conversion, IIFL Finance successfully issued USD325 million in 8.75% "Senior Notes due in 2028".

The joint bookrunners included several leading financial institutions. The transaction received an overwhelming response from global institutional investors across Asia, Europe, and the United States. The note offering started with an initial pricing guidance of 9% and reached peak demand of USD1.15 billion at final pricing. The final order book exceeded USD730 million, with allocations of 20% in Asia, 25% in EMEA, and 54% in the US. High-quality fund managers accounted for 95% of the allocation, while insurance companies and private banks made up 3% and 2%, respectively.

The successful issuance follows the Reserve Bank of India’s decision to lift the ban on IIFL’s gold financing business in September 2024, which has further strengthened investor confidence. IIFL’s management highlighted its resilient business model, robust processes, and strong risk controls during extensive investor engagements over the last few days.

Philip Lee, Partner at DLA Piper, commented: “This deal is significant as it not only highlights the strong investor demand but reaffirms market confidence in IIFL’s business model and growth prospects. It also reflects a broader trend among Indian, as well as other strong Asian credits, upgrading their MTN programmes to tap the more liquid markets in the United States. Our US capital markets team worked tirelessly to ensure the successful execution of this deal, demonstrating our strong English and US law capability in Singapore, and our commitment to supporting our clients achieve their financial goals through our specialized knowledge and expertise.”

The DLA Piper team was led by Corporate partner Philip Lee, with support from senior associate Andhari Sidharta, both based in Singapore. Philip also serves as regional head of the firm's Financial Services sector in Asia, as well as the regional lead for the India practice in Asia.