Bajaj Finance allotted secured redeemable non-convertible debentures (NCDs) worth ₹2,050.03 crore on a private placement basis on September 8, 2026. The company’s Debenture Allotment Committee approved the issuance during a meeting held that day.

The allotment comprises 2,05,000 NCDs with a face value of ₹1 lakh each. The aggregate amount includes an excess pertaining to the adjustment of multiple biddings. The debentures are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited.

Instrument Details

The NCDs carry a coupon rate of 8.07% per annum. Interest payments will commence on March 25, 2027, and continue annually thereafter until maturity. The instruments have a tenure of 1,294 days and are redeemable on maturity on March 25, 2030.

Security Structure

The repayment of principal and interest on these debentures is secured by a first pari-passu charge on book debts and loan receivables. The security cover is equivalent to 1.00 times the aggregate outstanding value of the debentures issued under the Shelf Placement Memorandum.

No special rights, interests, or privileges are attached to the instrument. There were no delays or defaults in interest or principal payments reported for this issue.

Bajaj Finance has completed the allotment of ₹5,000 crore worth of secured non-convertible debentures (NCDs) via private placement. Life Insurance Corporation of India subscribed to the entire issue. The Debenture Allotment Committee approved the issuance on August 27, 2026.

Fundraise details

The company allotted 500,000 secured NCDs, each with a face value of ₹1 lakh. The instruments carry a coupon rate of 8.15% p.a. and have a tenure of 3653 days (approximately 10 years), maturing on August 27, 2036. Interest payments will be made annually, with the first coupon due on August 27, 2027.

The following table summarises the key terms of the issued instrument:

Security and investor rights

The principal amount and interest are secured by a first pari-passu charge on book debts and loan receivables. For original investors in the tranche, the asset cover is maintained at 1.10 times the sum due at all times until redemption. Subsequent investors hold security with an asset cover of 1 times.

Investors in the initial tranche have specific rights linked to credit ratings:

• If the instrument’s rating is downgraded to AA- or below, original investors may increase the interest rate by up to 25 bps for every notch of downgrade.
• If the rating falls to A or below, original investors may recall the outstanding principal along with accrued interest and compensation by providing a 30-day notice.

About the instrument

NCDs are fixed-income debt instruments used by companies to raise capital. The private placement route allows issuers to offer securities to a select group of investors rather than through a public issue. This mechanism is commonly used by large non-banking financial companies to manage liquidity and fund growth.