Bajaj Finance has raised ₹4,505.15 crore by allotting 4,50,000 secured redeemable non-convertible debentures on a private placement basis. The funds will support its lending operations.

Bajaj Finance Allots ₹4,505 Crore in NCDs

Bajaj Finance has successfully allotted 4,50,000 secured redeemable non-convertible debentures (NCDs) valued at ₹4,505.15 crore through a private placement. The Debenture Allotment Committee approved this allotment on June 12, 2026.

Reader Takeaway: The NCD issuance bolsters Bajaj Finance's capital base, with higher yields offered for longer tenures.

What just happened

The company raised capital by issuing NCDs with a first pari-passu charge on its book debts and loan receivables. The NCDs are split into two options.

Option I involves ₹2,000.90 crore with 2,00,000 NCDs at a coupon rate of 7.93% per annum for a tenure of 1096 days.

Option II comprises ₹2,504.25 crore with 2,50,000 NCDs at a coupon rate of 8.00% per annum for 1795 residual days.

A security cover of at least 1.00x is maintained on book debts and loan receivables.

Why this matters

This capital infusion is crucial for Bajaj Finance's ongoing lending operations and growth plans. The issuance demonstrates the company's ability to access debt markets effectively to fund its business requirements.

The backstory

Bajaj Finance is a leading non-banking financial company (NBFC) in India, offering a wide range of financial products and services, including consumer finance, loans, and wealth management.

What changes now

The raised capital will strengthen Bajaj Finance's balance sheet, enabling it to extend more credit to customers and potentially drive further business expansion.

Risks to watch

Investors should monitor interest rate movements, as changes could impact the attractiveness of such debt instruments. The company's ability to manage its asset quality and maintain its security cover is also a key factor.

Peer comparison

Other leading NBFCs like HDFC Ltd (now merged with HDFC Bank) and Mahindra Finance also regularly raise capital through debt instruments to fund their growth.

Context metrics (time-bound)

The NCDs have tenures of 1096 days and 1795 days, with coupon rates of 7.93% and 8.00% respectively.

What to track next

Investors will be looking for how Bajaj Finance deploys this capital and its impact on the company's profitability and asset growth in subsequent financial quarters.