Bajaj Finance Limited has successfully allotted 500,000 Secured Redeemable Non-Convertible Debentures (NCDs) on a private placement basis. The total value of this allotment amounts to ₹5,000 crore, with each NCD having a face value of ₹1 Lakh. This capital infusion is a significant move for the company’s financial strategy and its ongoing growth initiatives.
Capital Infusion Through NCD Allotment
Bajaj Finance Limited announced today, August 27, 2026, the allotment of 500,000 Secured Redeemable Non-Convertible Debentures (NCDs) through a private placement. The total aggregated value of this issuance stands at a substantial ₹5,000 crore, with each NCD carrying a face value of ₹1 Lakh. This strategic capital raising exercise was approved by the Debenture Allotment Committee of the company.
Details of the Secured NCDs
The newly allotted NCDs are designated as Secured NCDs, indicating specific collateral arrangements. The instrument features a tenure of 3653 days, with the allotment date being August 27, 2026, and the maturity date set for August 27, 2036. The coupon or interest rate offered on these NCDs is fixed at 8.15% per annum.
Payment Schedule and Security
The payment schedule for the coupon and principal outlines the first coupon payment on August 27, 2027, with subsequent annual payments thereafter, continuing until maturity. The NCDs are secured by a first pari-passu charge on the company’s book debts and loan receivables. For original investors, the asset cover is maintained at 1.10 times the sum, while subsequent investors are covered to the extent of 1 times the sum, ensuring robust security for the debenture holders.
Special Rights and Step-Up Coupon
The instrument includes provisions for a step-up coupon rate. If the credit rating of the instrument is downgraded to “double A minus (AA-)” or below, the original investors have the right to increase the interest rate by up to 25 basis points for every notch of downgrade. Furthermore, if the rating falls to “A” or below, original investors can recall the outstanding principal amount along with accrued interest and compensation, providing a 30-day notice period to the issuer.
Listing and Other Provisions
These debentures are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited. The ISIN for this issue is FRESH ISSUE – INE296A07UE3. The terms also specify that any delay in payment of interest or principal beyond three months is not applicable, and details concerning redemption are available, with the debentures being redeemable on maturity.
Source: BSE
