IIFL Samasta Bonds Explained: Structure, YTM, Credit Rating & Key Risks

Introduction

Corporate bonds issued by non-banking financial companies (NBFCs) form a significant segment of India’s fixed-income market. These instruments allow NBFCs to raise capital for lending operations while offering investors predefined interest payments and maturity timelines, subject to credit and market risks.

Search queries such as iifl samasta bonds, iifl samasta bonds review, or iifl samasta secured bonds often reflect an attempt to understand how a specific bond issue is structured, how yield metrics such as yield to maturity (YTM) are calculated, and what risks are involved.

This article provides a purely educational explanation of IIFL Samasta bonds, focusing on structure, credit rating, collateral coverage, and key risks, without ranking, recommending, or assessing suitability.

Overview of IIFL Samasta Bonds

IIFL Samasta bonds refer to non-convertible debentures (NCDs) issued by IIFL Samasta Finance Limited through private placement. These bonds are:

Listed on recognised stock exchanges

Senior secured in nature

Issued with a fixed coupon structure

Identified by a unique ISIN

Each bond series is governed by the terms set out in the offer document and the debenture trust deed, which together define interest payments, maturity, security, and bondholder rights.

Key Bond Features at a Glance

The key disclosed features of the IIFL Samasta Finance Limited Jul’27 bond series include:

• Issuer: IIFL Samasta Finance Limited

• Bond Name: IIFL Samasta Finance Limited Jul’27

• ISIN: INE413U07426

• Nature: Listed

• Seniority: Senior

• Bond Type: Senior Secured

• Mode of Issue: Private Placement (EBP)

• Date of Issue: 23 July 2025

• Date of Maturity: 23 July 2027

• Tenure: Approximately 1 year 6 months

• Face Value: ₹10,000 per bond

• Coupon Rate: 9.50 percent (fixed)

• Interest Payout Frequency: Monthly

• Yield to Maturity (YTM): 10.60 percent

• Credit Rating: CRISIL AA- (Stable)

• Debenture Trustee: Vardhaman Trusteeship Private Limited

• Collateral Coverage: 1.10x

• Minimum Investment Amount: ₹9,912

These parameters collectively define the financial and contractual structure of the bond.

Bond Instrument Structure

IIFL Samasta bonds are structured as senior secured non-convertible debentures, which implies:

• They represent a debt obligation of the issuer

• Bondholders rank ahead of unsecured creditors

• The bonds are backed by identified collateral

• Coupon rate and maturity are fixed at issuance

This structure provides clarity on repayment priority and scheduled cash flows, subject to the issuer’s financial performance and adherence to bond covenants.

Yield to Maturity (YTM) and Coupon Rate

Coupon Rate

The coupon rate for this bond series is 9.50 percent, calculated on the face value of the bond. Interest is paid monthly, resulting in regular periodic cash flows during the bond’s tenure.

Yield to Maturity (YTM)

The yield to maturity (YTM) of 10.60 percent represents the annualised return implied if the bond is held until maturity, assuming:

• All coupon payments are received on schedule

• The bond is purchased at the prevailing market price

• Principal is repaid in full at maturity

YTM differs from the coupon rate because it incorporates the purchase price, remaining tenure, and timing of cash flows. It is a calculated metric and not a guaranteed outcome.

Bond Price, Face Value and ISIN

Face Value

The face value of the bond is ₹10,000, which represents:

• The principal amount

• The base on which interest is calculated

• The amount scheduled for repayment at maturity

Bond Price

• Clean Price: ₹99.14

• Dirty Price: ₹99.11

The difference between clean and dirty price reflects accrued interest between coupon dates.

ISIN

The bond is identified by ISIN INE413U07426, which enables:

• Tracking of disclosures and rating updates

• Trading and settlement through depositories

• Clear identification of the specific bond series

Credit Rating Overview and Interpretation Drag

IIFL Samasta bonds carry a CRISIL AA- (Stable) credit rating.

What the Rating Indicates

• AA-: High degree of safety regarding timely servicing of financial obligations, relative to lower-rated instruments

• Stable Outlook: No immediate expectation of rating change based on current information

Credit ratings:

• Are opinions, not guarantees

• Reflect relative credit risk, not certainty of repayment

• Can change due to financial, operational, or macroeconomic developments

Issuer Background: IIFL Samasta Finance Limited

IIFL Samasta Finance Limited is an NBFC focused on microfinance and small-ticket lending, primarily serving underserved and rural borrower segments. The company operates through a branch-based model complemented by digital processes for loan origination and monitoring.

As part of a larger financial services group, the issuer raises funds through bank borrowings, institutional debt, and bond issuances to support its lending portfolio. Its ability to service bond obligations is linked to portfolio quality, operational efficiency, and access to funding.

Security and Collateral Structure

The bonds are secured, with disclosed collateral coverage of 1.10x, meaning:

The value of pledged collateral exceeds the outstanding bond amount by approximately 10 percent

Collateral is monitored under the supervision of the debenture trustee, in accordance with the debenture trust deed. While security may reduce loss severity in certain scenarios, it does not eliminate credit risk.

Interest Payout and Maturity Profile

Interest Payout

• Interest is paid monthly

• Payments are based on the fixed coupon rate

• Cash flow dates are specified in the offer document

Maturity

• The bond matures on 23 July 2027

• Principal repayment is scheduled at maturity, subject to issuer performance

The relatively short remaining tenure affects reinvestment considerations and sensitivity to interest-rate changes.

Key Risks Associated with IIFL Samasta Bonds

IIFL Samasta bonds, like all corporate debt instruments, involve several risks:

• Credit Risk: Dependence on the issuer’s ability to meet interest and principal obligations

• Business Risk: Exposure to microfinance and small-ticket lending segments

• Interest Rate Risk: Market price sensitivity to changes in interest rates

• Liquidity Risk: Potential difficulty in selling the bond before maturity

• Collateral Risk: Realisable value of secured assets may vary

These risks apply irrespective of coupon level, listing status, or rating category.

Liquidity and Secondary Market Considerations

Although the bonds are listed, secondary market liquidity may vary. Corporate bonds generally trade less frequently than equities, and exit prices depend on:

• Market demand

• Prevailing interest-rate environment

• Issuer-specific developments

Listing improves transparency but does not ensure ease of exit.

Common Misconceptions About Secured NBFC Bonds

Common misconceptions include:

• Secured bonds are risk-free

• High credit ratings guarantee repayment

• Coupon rate equals actual return

• Listed bonds are always liquid

Clarifying these misconceptions helps in interpreting bond disclosures more accurately.

Conclusion

IIFL Samasta bonds are structured as senior secured, listed debt instruments with fixed coupons and defined maturities. Understanding bond structure, YTM calculation, credit rating context, collateral coverage, and associated risks provides clarity on how these instruments function within India’s corporate bond market.

These bonds should be viewed as contractual obligations subject to issuer-specific and market-related uncertainties rather than as standardised or risk-free products.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.