Bajaj Finance Raises Rs 2,120 Crore Through NCD Issuance

Bajaj Finance Ltd has successfully completed the allotment of 2,12,000 secured redeemable non-convertible debentures (NCDs) amounting to Rs 2,120 crore. The issuance was conducted via a private placement route, with the debentures carrying a face value of Rs 1 lakh each.

Reader Takeaway: This zero-coupon debt issuance serves as a routine capital optimization strategy to fund ongoing business growth efficiently.

What just happened

Bajaj Finance has allotted 2,12,000 NCDs to raise Rs 2,120 crore. These instruments have been issued on a zero-coupon basis, meaning there are no periodic interest payments. Instead, the principal repayment will occur at maturity on October 21, 2031, providing the company with five years of tenure (1,826 days).

Why this matters

This move demonstrates the company's continued reliance on the wholesale debt market to meet its liquidity requirements. By using private placements, the firm maintains flexibility in its borrowing strategy. The NCDs will be listed on the Wholesale Debt Market segment of the BSE, ensuring transparency in their valuation.

Security and Terms

To protect the interests of debenture holders, the NCDs are backed by a first pari-passu charge on the company’s book debts and loan receivables. Bajaj Finance has committed to maintaining a minimum security cover of 1.00 time the aggregate outstanding value of the debentures throughout the tenure of the instrument.

What to track next

Investors should continue to monitor the company's broader borrowing profile and overall cost of funds in subsequent quarterly earnings reports. As the company expands its retail and SME lending books, consistent access to diversified funding sources remains a key operational pillar.