AAVAS Financiers’ Executive Committee has approved the issuance of Unlisted, Secured, Unrated, Redeemable Non-Convertible Debentures (NCDs) for an aggregate amount of approximately ₹975 Crores. This issuance, approved on December 23, 2025, will be executed via private placement. The funds raised will potentially be up to US$ 108,000,000. The NCDs will be issued in 2 tranches consisting of 3 series of debentures.
NCD Issuance Details
The Executive Committee of the Board of Directors of AAVAS Financiers approved the issuance of Unlisted, Secured, Unrated, Redeemable and Coupon bearing Non-Convertible Debentures (NCDs) on December 23, 2025. The face value of each NCD is INR 2,00,00,000. The total issuance will be for an aggregate amount of approximately ₹975 Crores, or up to US$ 108,000,000 equivalent. This funding will be secured through a private placement basis.
Tranche Breakdown
The NCDs will be issued in 2 tranches, encompassing 3 distinct series:
- Tranche 1 Debentures:
- Series 1: Not exceeding the INR equivalent of up to US$100 million.
- Series 2: Not exceeding the INR equivalent of up to US$4 million.
- Tranche 2 Debentures:
- Series 3: Not exceeding the INR equivalent of up to US$4 million.
Redemption and Coupon Details
The Final Redemption Date will vary by tranche:
- Tranche 1: The fourteenth Coupon Payment Date for Series 1 and Series 2.
- Tranche 2: The twelfth Coupon Payment Date for Series 3, but no later than the Final Redemption Date of Tranche 1.
The coupon/interest offered for each series will be:
- Series 1: Determined close to the actual issuance date.
- Series 2: Series 1 Coupon minus 150 bps.
- Series 3: Same as Series 2.
Payment Schedule
Coupon payments will be made every 6 months from the deemed date of allotment, excluding the last payment. The final coupon payment will coincide with the Final Redemption Date. The company will partially redeem:
- Debentures under Tranche 1 in 12 equal installments, starting from the third coupon payment date.
- Debentures under Tranche 2 in 8 equal installments, starting from the fifth coupon payment date.
Security Details
The debentures will be secured with a first-ranking exclusive charge on specific and identified receivables (excluding NPAs and restructured loans), maintaining a security cover of 110% of the interest and principal.
Source: BSE
