Bajaj Finance Ltd., one of India’s leading non-banking financial companies (NBFCs), has successfully raised ₹1,555 crore through the allotment of non-convertible debentures (NCDs) on a private placement basis. The capital infusion underscores the company’s continued strategy to diversify its funding sources and strengthen its balance sheet amid evolving credit market conditions.
According to the company’s regulatory filing, Bajaj Finance allotted 1,55,500 secured redeemable NCDs, each with a face value of ₹1 lakh, aggregating to ₹1,555 crore. The NCDs carry a coupon rate of 7.37% per annum and have a tenure of 1,824 days—roughly five years.
Key Details of the Issue
The date of allotment for the debentures was September 29, 2025, with the first annual interest payment scheduled for September 27, 2026. Subsequent coupon payments will be made annually, and the final redemption (coupon plus principal) will take place on September 27, 2030. The debentures are proposed to be listed on the Wholesale Debt Market (WDM) segment of the BSE to provide liquidity to investors.
Each debenture is secured by a first pari passu charge over the company’s book debts and loan receivables, with a minimum security cover of one time the outstanding debenture value. The issue has been assigned the ISIN INE296A07TQ9.
Strengthening the Funding Mix
By raising funds through NCDs, Bajaj Finance aims to optimize its capital structure and maintain an efficient funding mix that balances cost, maturity, and risk. The issuance underlines the company’s ability to attract institutional investors, reflecting confidence in its financial health and creditworthiness.
Private placements allow companies to issue debt instruments directly to select investors—often mutual funds, pension funds, or insurance companies—providing flexibility and lower administrative costs compared to public issues.
Interest Rate and Market Context
The 7.37% coupon rate indicates a competitive pricing level given current market rates for top-rated NBFCs. The rate reflects both the interest rate environment and investors’ confidence in Bajaj Finance’s strong credit profile. The company continues to maintain high asset quality and a diversified loan book, which are key factors in securing favorable borrowing terms.
Outlook
With this NCD issuance, Bajaj Finance continues to reinforce its liquidity position and ensure long-term funding stability for its lending operations. The company is expected to deploy the raised capital toward business expansion and to meet its growing loan demand across retail and SME segments.
As India’s financial markets continue to show robust demand for high-quality corporate debt, Bajaj Finance’s successful placement reinforces its reputation as one of the country’s most reliable NBFCs in the debt capital market.