Bajaj Finance (NSE:BAJFINANCE) informed BSE and NSE on 18 August 2026 that its Debenture Allotment Committee had allotted 50,000 Secured Redeemable Non-Convertible Debentures on a private placement basis, aggregating to Rs 498.22 crore, inclusive of discount and accrued interest.
Key Highlights
- The company allotted 50,000 NCDs at a face value of Rs 1 lakh each, aggregating to Rs 498.22 crore including discount and accrued interest, on 18 August 2026.
- The NCDs carry a coupon rate of 7.79% per annum, with the first interest payment scheduled on 6 July 2027, and annually thereafter until maturity on 4 July 2036.
- The debentures are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited under ISIN INE296A07UC7, which is a re-issue.
- Repayment is secured by a first pari-passu charge on book debts and loan receivables, with a minimum security cover of 1.00 times the aggregate outstanding value of debentures.
About the Company
Bajaj Finance Limited (NSE:BAJFINANCE), headquartered at Viman Nagar, Pune, Maharashtra, is one of India's largest non-banking financial companies. It offers consumer lending, SME financing, commercial lending, and deposits across urban and rural geographies. The company is a subsidiary of Bajaj Finserv Limited and operates with a loan book spanning millions of customers nationwide.
Announcement in Detail
The Debenture Allotment Committee of Bajaj Finance met on 18 August 2026, commencing at 12:05 p.m. and concluding at 12:25 p.m., and approved the allotment of 50,000 Secured Redeemable Non-Convertible Debentures on a private placement basis. Each NCD carries a face value of Rs 1 lakh, with the total issue size aggregating to Rs 498.22 crore, inclusive of discount and accrued interest.
The instrument has a residual tenure of 3,608 days from the allotment date of 18 August 2026, maturing on 4 July 2036. The coupon is fixed at 7.79% per annum, payable annually starting 6 July 2027, with the principal redeemable on maturity. The debentures will be listed on the Wholesale Debt Market Segment of BSE Limited under ISIN INE296A07UC7, classified as a re-issue.
Impact on Investors
The filing shows the debentures are secured by a first pari-passu charge on the company's book debts and loan receivables, with a minimum security cover of 1.00 times the outstanding debenture value. Investors will note this is a private placement instrument targeted at institutional participants through the Wholesale Debt Market, and is not a public offer to retail shareholders.
Shareholders will observe that this issuance represents incremental borrowing on Bajaj Finance's balance sheet. The disclosed terms indicate fixed annual interest obligations at 7.79% per annum over approximately ten years, which forms part of the company's broader liability management strategy as disclosed in exchange filings.
Sector / Market Context
Indian NBFCs have increasingly used the NCD route to diversify their funding mix beyond bank borrowings. According to SEBI data, private placement of debt securities by listed entities has been a consistent instrument for managing long-duration liabilities. For NBFCs like Bajaj Finance, access to ten-year paper at fixed rates supports asset-liability management, particularly given the Reserve Bank of India's ongoing focus on NBFC liquidity frameworks and credit risk guidelines issued over recent years.