Paisalo Digital Limited has achieved a significant milestone by successfully completing its inaugural External Commercial Borrowing (ECB) transaction worth USD 15 million on March 17, 2026. The leading non-banking finance company (NBFC), which specializes in inclusive lending, announced this development through a press release submitted under Regulation 30 of SEBI (LODR) Regulations, 2015.

Strategic Funding Diversification

This maiden ECB issuance represents a strategic initiative aimed at broadening the company's funding mix and accessing cost-effective, long-tenor capital from international markets. The transaction marks a significant advancement in Paisalo Digital's liability diversification journey, introducing a stable and diversified source of funding while optimizing the blended cost of capital.

Capital Deployment Strategy

The proceeds from this ECB issuance will be utilized to support the company's continued expanding lending portfolio. Paisalo Digital plans to maintain its focus on key segments including:

• MSMEs (Micro, Small and Medium Enterprises)
• Income-generation segments
• Other priority sectors

This strategic capital deployment aligns with the company's commitment to inclusive lending and financial inclusion across underserved market segments.

Management Commentary

Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, emphasized the significance of this achievement. He stated that the successful closure of the maiden ECB issuance marks a pivotal step in strengthening the company's liability franchise. Agarwal highlighted that accessing diversified and long-tenor funding enhances the company's ability to sustainably scale the business while maintaining prudent risk management.

Market Confidence and Growth Prospects

The transaction demonstrates strong lender confidence in Paisalo Digital's business fundamentals, including:

• Disciplined underwriting practices
• Resilient asset quality
• Scalable, technology-enabled distribution model
• Robust operating model and growth strategy

According to management, the additional capital will enable the company to deepen credit penetration across underserved segments and drive inclusive economic development. This ECB issuance positions Paisalo Digital to enhance its long-term growth visibility while maintaining its focus on responsible lending practices.

Paisalo Digital Limited has secured a BWR AA/Stable credit rating from Brickwork Ratings India Private Limited for its proposed Non-Convertible Debentures (NCDs) worth Rs. 1500.00 crores. The company announced this development through regulatory filings dated March 14 and March 16, 2026, submitted to BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Assignment

Brickwork Ratings assigned the BWR AA/Stable rating for the proposed long-term NCDs, which will be utilized exclusively for growth in the loan book portfolio from micro, small and medium enterprises (MSME) and Small Business segments. This rating assignment complements the existing credit rating coverage provided by Infomerics Analytics and Research Private Limited.

Rating Rationale and Key Strengths

The BWR AA/Stable rating reflects Paisalo Digital's established and scalable franchise, strong capitalization profile, and experienced management team. The company operates across 22 states with 402 branches, 3,041 distribution points, and 1,429 business correspondent locations, demonstrating robust physical and semi-digital distribution infrastructure.

Management Commentary and Strategic Impact

Commenting on the development, Santanu Agarwal, Deputy Managing Director, Paisalo Digital Limited, stated that receiving an additional rating from Brickwork Ratings India Private Limited alongside the existing rating from Infomerics Analytics and Research Private Limited highlights the strength of Paisalo's capital position, asset quality discipline and scalable lending model. He emphasized that obtaining dual credit ratings materially expands the universe of debt instruments and investor pools that Paisalo can access.

Business Model and Market Position

Paisalo Digital Limited, formerly S.E. Investments Limited, is a Systemically Important Non-Deposit Accepting NBFC established in 1992. The company focuses on the "Bottom of the Pyramid" segment through its innovative co-lending model and artificial intelligence-led digital transformation. With approximately 3,147 personnel as of December 2025, the company maintains long-standing relationships with major banks including SBI and Bank of India.

Risk Factors and Monitoring Points

The rating agency noted some areas requiring monitoring, including moderation in asset quality with 30+ days past due increasing from 2.08% in March 2025 to 3.15% in December 2025. The company's moderate scale relative to larger NBFC peers and ability to maintain asset quality while pursuing growth remain key monitoring factors.

Regulatory Compliance and Stakeholder Communication

The company fulfilled its disclosure obligations by informing stock exchanges about this credit rating development. The notification was signed by Manendra Singh, Company Secretary, and communicated to multiple stakeholders including AFRINEX Exchange Listing Centre, India International Exchange (IFSC) Ltd., Axis Trustee Services Limited, and MITCON Credentia Trusteeship Services Limited.