(20 second reading) The subsidiary of Fairfax Financial Holdings provided a Rs 500-crore lifeline to IIFL Finance, which is banned by the Reserve Bank of India from offering gold loans due to irregularities in its lending process.
Odyssey Reinsurance, a subsidiary of the Prem Watsa-promoted company, provided three-year debt in the form of secured, rated, listed bonds at a 9.5% coupon, payable semi-annually, they added.
IIFL Finance’s total loan AUM is Rs 77,444 crore, of which gold loans account for about 32%, or Rs 24,692 crore, as of December 31, 2023.
A day after the banking regulator curbed IIFL from giving new gold loans, Canadian billionaire Watsa announced liquidity support of $200 million to if the company faces a funding crunch.