Capri Global Plans $1 Billion Global Debt Program

Capri Global Capital Limited is establishing a Global Medium-Term Note (GMTN) program of up to USD 1 billion to tap international debt markets. The program will allow for issuing foreign currency bonds and notes, primarily under U.S. regulations. The company's Management Committee authorized officers on March 25, 2026, to finalize and sign the necessary documents for this initiative, aiming to increase flexibility in accessing global capital.

Why It Matters

This USD 1 billion program will diversify Capri Global Capital's funding base, reducing its reliance on domestic sources. Accessing global markets offers a chance to secure competitive financing terms for its ongoing expansion, potentially supporting growth in its MSME, housing, and gold loan segments.

Previous Funding Rounds

Capri Global Capital has a history of raising capital to fuel its growth. In March 2026, it raised ₹2,000 crore through Non-Convertible Debentures (NCDs), followed by another ₹2,000 crore via a Qualified Institutions Placement (QIP) in June 2025. Earlier, in March 2023, the company secured ₹1,440 crore through a rights issue to support expansion. These capital raises coincided with significant asset growth, with consolidated Assets Under Management (AUM) climbing from ₹15,653 crore in FY24 to ₹22,860 crore in FY25.

Key Impacts

• Enhanced Funding Pool: Access to USD 1 billion provides a significantly larger pool of capital for business expansion.
• Diversified Debt Profile: Reduces dependence on domestic lenders and bond markets.
• Global Investor Reach: Opens avenues to engage with international investors and understand global financing trends.
• Strategic Flexibility: Provides greater financial agility to meet evolving market demands and growth opportunities.

Key Risks

• Execution Risk: The issuance of foreign currency bonds is subject to prevailing market conditions and timely regulatory approvals.
• Currency Fluctuations: While the debt will be in foreign currency, the company's underlying assets are in INR, creating potential currency mismatch risks if not managed.
• Past Regulatory Action: In September 2023, SEBI fined individuals for share price manipulation related to Capri Global Capital, indicating a past issue with market integrity concerning the company's stock.

Peer Comparison

Major diversified NBFCs like Bajaj Finance and Cholamandalam Investment and Finance Company routinely access debt markets to fund their balance sheets through NCDs and other instruments. These peers also demonstrate a strategic reliance on diverse funding avenues to maintain liquidity and capital for their extensive lending operations.

Key Metrics

• Capri Global's Consolidated AUM stood at ₹247,538 million as of Q1 FY26.
• The company reported a Consolidated Profit After Tax (PAT) of ₹1,749 million for Q1 FY26.
• As of Q1 FY26, the consolidated Debt/Equity ratio was 2.5x.

What to Track Next

• Finalisation of the GMTN programme's terms, conditions, and pricing.
• The actual issuance of notes or bonds under the programme.
• Details on how the raised funds will be deployed to support business growth.
• Monitoring of market conditions and regulatory approvals for the issuance.