ESAF Small Finance Bank allots NCDs worth ₹85 Cr at 11.65%
ESAF Small Finance Bank has allotted 8,500 Basel II compliant NCDs aggregating ₹85 crore via private placement. The unsecured, listed instruments carry a fixed coupon rate of 11.65% per annum, payable quarterly, and have a tenure of 73 months maturing on July 25, 2032.
*this image is generated using AI for illustrative purposes only.
ESAF Small Finance Bank has allotted non-convertible debentures (NCDs) aggregating ₹85 crore through a private placement to strengthen its capital base. The bank's Allotment Committee of Executives approved the issuance of 8,500 unsecured, listed, and taxable Basel II compliant lower Tier II subordinated bonds on June 25, 2026. These debt instruments carry a fixed coupon rate of 11.65% per annum, payable quarterly, providing investors with a steady income stream over the instrument's life.
The NCDs are classified as fully paid-up and redeemable with a face value of ₹1,00,000 each. The issuance was conducted under the regulatory framework provided by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank intends to list these securities on the Negotiated Trade Reporting Platform under the New Debt Market segment of the National Stock Exchange of India Limited, ensuring liquidity for the bondholders.
Key Details of the Allotment
The debentures have a defined tenure of 73 months, with the date of allotment recorded as June 25, 2026, and the maturity date set for July 25, 2032. The specific details regarding the instrument are outlined below:
| Parameter | Details |
|---|---|
| Type of Instrument | Non-Convertible Debentures (Basel II compliant lower Tier II subordinated bonds) |
| Total Allotment | 8,500 NCDs |
| Aggregate Value | ₹85,00,00,000 (₹85 Crore) |
| Face Value | ₹1,00,000 per NCD |
| Coupon Rate | 11.65% per annum (Fixed) |
| Interest Payment Frequency | Quarterly |
| Tenure | 73 Months |
| Date of Allotment | 25 June 2026 |
| Date of Maturity | 25 July 2032 |
| Listing Platform | NSE (NTRP) |
| Security Status | Unsecured |
The issuance is part of the bank's broader strategy to manage its capital adequacy and leverage long-term funding options. As the instruments are unsecured, they do not carry any charge over the bank's assets. The ISIN designated for these securities is INE818W08172. The disclosure was formally communicated to the stock exchanges by Ranjith Raj. P, the Company Secretary and Compliance Officer of ESAF Small Finance Bank.
Historical Stock Returns for ESAF Small Finance Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.21% | -7.69% | +13.74% | +24.77% | +0.56% | -52.87% |
How will the 11.65% coupon rate impact ESAF Small Finance Bank's net interest margins given current market conditions?
What specific capital adequacy ratio improvements does the bank anticipate from this ₹85 crore infusion?
Will the bank pursue additional Tier II capital issuances in the near future to further strengthen its base?
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