Bajaj Housing Finance Secures ₹955 Crore Through NCDs

Bajaj Housing Finance Limited has finalized the issuance of ₹955 crore in Secured Redeemable Non-Convertible Debentures (NCDs). The securities carry a 7.90% annual interest rate and mature in May 2031. This capital infusion is designed to fuel growth and will add to the company's financial structure at a fixed cost of 7.90%.

Key Details of the Issuance

Bajaj Housing Finance has issued secured redeemable non-convertible debentures (NCDs) totaling ₹955 crore. The NCDs bear an annual interest rate of 7.90% and will mature in five years. They are secured by a first pari-passu charge on the company's book debts and loan receivables and are set to be listed on the BSE's Wholesale Debt Market.

Impact of the Fundraise

The issuance significantly strengthens Bajaj Housing Finance's balance sheet, injecting capital vital for its lending operations. This funding is crucial for expanding its housing loan portfolio and meeting increasing customer demand. It demonstrates the company's successful access to debt markets at competitive rates.

Company Background

Bajaj Housing Finance is a key subsidiary of Bajaj Finance Ltd., dedicated to the housing loan sector. The company holds strong credit ratings, including AAA from CRISIL and ICRA, reflecting its financial stability and low default risk. These ratings are instrumental in its ability to efficiently access capital markets for business expansion.

What This Means for the Company

This issuance enhances the company's financial capacity for growth. The balance sheet is strengthened by the addition of long-term debt, improving liquidity to support increased loan disbursements.

Security of the Debentures

The NCDs are secured by a first pari-passu charge on the company's book debts and loan receivables, making them a secured funding instrument.

Competitive Landscape

Bajaj Housing Finance operates in a competitive market alongside peers such as HDFC Ltd. and LIC Housing Finance Ltd. These companies also maintain strong credit profiles and regularly use debt markets to finance their operations.

Issue Details

The total size of the NCD issue is ₹955.00 crore. The NCDs carry a coupon rate of 7.90% per annum, payable annually, with a tenure of 1,826 days (5 years). These debentures were allotted on May 12, 2026, for the fiscal year FY27, with a maturity period spanning FY27 to FY32.

Looking Ahead

Investors will monitor the successful listing of these NCDs on the BSE Wholesale Debt Market. Key tracking points include how the company deploys the raised capital, future debt-raising plans and their terms, and the performance of the housing loan segment and asset quality.