New Delhi, June 3 -- IIFL Finance Ltd was set to close its debut social bond issuance on Wednesday after robust demand enabled it to compress pricing.

The non-banking financial company tightened pricing to 7.6% from an initial guidance of 7.9%, after investor demand exceeded $1.7 billion, according to people familiar with the matter.

Proceeds from IIFL's dollar-denominated transaction will be deployed to fund the credit requirements of more than 5 million unbanked or underbanked consumers, the people cited above said, requesting anonymity.

At the time of filing, subscription books were still being filled by US investors following earlier rounds of bidding.

The Mumbai-listed lender, which recently got a Rs.2,000 crore capital injection...