IIFL Finance is entering the final stages of a major capital expansion, targeting a raise of **$500 million to $750 million** through external commercial borrowings and dollar bonds this March. This strategic move, backed by Fairfax, aims to significantly diversify the lender's resource base and reduce its dependence on domestic bank funding. The fundraising is structured as a mix of dollar-denominated loans and foreign currency social bonds. These instruments are gaining traction as the company looks to fuel its business growth and capitalize on the latest regulatory relaxations. **Regulatory Tailwinds and Market Demand** The timing of this move coincides with the Reserve Bank of India’s landmark reforms introduced on **February 16, 2026**. Under the new framework, the borrowing limit for eligible entities has been increased from **$750 million to $1 billion**. Furthermore, the central bank has removed the all-in-cost ceiling, allowing borrowing rates to align naturally with global market conditions. Investor appetite for the company's debt remains high. A recent **2,000 crore INR** retail bond issue, launched on **February 17, 2026**, was oversubscribed within hours of opening. Domestic institutional demand also stays robust, with the company currently in the process of raising an additional **1,000 crore INR** through private placements. **Operational Recovery and Growth** IIFL Finance has shown a strong operational rebound following a challenging 2025. Key highlights include: - Total Assets Under Management (AUM) recovered to approximately **98,336 crore INR**. - Gold loan AUM surged by **189% year-on-year**, reaching **43,432 crore INR**. - Home loan portfolios remain stable at **31,893 crore INR**, reflecting a **5% annual growth**. The lender is currently engaging with a broad spectrum of global financial institutions, including prominent banks from **Singapore and Taiwan**. Existing lenders such as Deutsche Bank and Mizuho Bank have historically participated in the company's debt issues, underscoring its international credit standing. **Market Performance and Credit Stability** The company's stock is currently trading near the **503 INR** level, maintaining a market capitalization of approximately **21,385 crore INR**. While the broader financial sector has faced some volatility, IIFL has shown relative resilience, supported by a "Buy" rating from major analysts and a price target as high as **720 INR**. Credit ratings remain steady, with instruments assigned **AA/Stable by CRISIL** and **AA+/Stable by Brickwork Ratings**. These ratings reflect a low credit risk profile and high safety for debt servicing. The proceeds from the upcoming March issuance are earmarked for onward lending and the refinancing of existing high-cost debt. This shift toward international markets is expected to optimize the company's finance costs and provide the necessary capital cushion for its projected 2026 growth cycle.