Squire Patton Boggs has advised IIFL Finance Limited on the update of its US$1 billion Global Medium-Term Note (GMTN) Programme and on a US$500 million social bond drawdown under that programme. The transaction is India's first significant international dollar bond issuance since January of this year, and one of the first major deals executed under India's newly liberalised External Commercial Borrowings (ECB) framework.
Indian issuers had been effectively shut out of the international dollar bond market since January 2026, as escalating geopolitical tensions sent overseas yields sharply higher. Against this backdrop, IIFL Finance’s strong reputation, consistent investor engagement and the compelling social purpose of the bond drew an order book of nearly US$2 billion from global institutional investors. The notes were priced at 7.6% for a 3.25-year tenor, with HSBC, Standard Chartered, JP Morgan and Emirates NBD acting as joint bookrunners.
The notes are structured as a social bond, the first such international issuance by IIFL Finance, with proceeds directed to lending for economically weaker sections including MSME loans, gold loans and loans against property. Fairfax-backed IIFL Finance has assets under management of approximately Rs 1.8 lakh crore and operates over 4,800 branches across smaller towns and rural India. The social bond framework aligns the company's international capital markets activity with its core mission of providing financial access to communities that are often underserved by mainstream financial institutions.
The deal was conducted under India's revised ECB framework, which came into effect on 16 February 2026. The reforms include raising the ECB borrowing cap to the higher of US$1 billion or 300% of net worth, removing all-in cost ceilings, and expanding the pool of eligible lenders to all non-residents globally.
The team was led by Corporate partner, Philip Lee, who heads capital markets for the Asia Pacific region at Squire Patton Boggs, with the assistance of counsel Andhari Sidharta, senior associate Le Jing Ong and associate Suneha Kasel.
Philip Lee commented: "We are grateful to IIFL Finance for trusting us with this mandate. Reopening the Indian dollar bond market with a first-of-its-kind social bond under the new ECB framework is a landmark moment, not just for IIFL Finance, but for Indian capital markets as a whole. At a time of geopolitical tensions and rising overseas yields an order book of nearly US$2 billion speaks for itself. Our team's US securities law expertise and cross-border precision made that possible, and that is something I am immensely proud of. This is not just a bond. It is a bridge between global capital and the communities that have never had easy access to it."
IIFL Finance Limited (NSE: IIFL, BSE: 532636) is one of the leading players in the financial services space in India. Together with its subsidiaries – IIFL Home Finance Limited, IIFL Samasta Finance Limited and IIFL Open Fintech Private Limited, it provides a diverse range of loans and mortgages. The company has a nationwide presence with a network of more than 4,800 branches across 500 cities.
