Canara HSBC Life Insurance Company Limited has successfully concluded its Debt Raising Committee meeting on March 6, 2026, approving the Key Information Document for its subordinated debt instrument issuance worth ₹250 crores. The committee meeting, which commenced at 9:45 am and concluded at 10:00 am, marked a significant milestone in the company's fundraising initiative through Non-convertible Debentures (NCDs).

Board Approval and Committee Formation

The foundation for this debt raising exercise was established through a systematic approval process. The Board of Directors initially approved the subordinated debt instrument issuance on January 21, 2026, authorizing the raising of funds through Non-convertible Debentures (NCDs). Subsequently, the Board constituted a specialized Debt Raising Committee on February 9, 2026, to handle the technical documentation and approval processes.

Committee Meeting Outcome

The Debt Raising Committee approved the Key Information Document containing commercial terms for the proposed debt issuance. The meeting represents the completion of a crucial step in finalizing the structure and terms of the subordinated debt instruments before proceeding with the private placement process. The company formally notified both NSE and BSE about the meeting outcome under Regulation 30 compliance requirements.

Debt Instrument Characteristics

The approved NCDs are structured with specific features to meet regulatory requirements for insurance companies and qualify as subordinated debt:

Terms and Conditions

The Debt Raising Committee has delegated authority to Authorised Persons to finalize specific commercial terms including the date of allotment, maturity date, and coupon/interest rates. These details will be disclosed in the relevant Key Information Document. In case of payment defaults exceeding three months, the company will pay interest at a rate 2% per annum above the standard interest rate until the default is resolved to the satisfaction of the Debenture Trustee.

The subordinated nature of these debentures means they rank lower in priority compared to other debts in liquidation scenarios, while the private placement approach provides flexibility in terms and timing by targeting qualified institutional investors rather than public subscription.

Canara HSBC Life Insurance Company Limited has secured a CARE AA+ stable credit rating from CARE Ratings Limited for its proposed subordinate debt issue worth ₹250 crore. The company informed stock exchanges about this development on February 24, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings Limited assigned the rating on February 23, 2026, following the company's request for rating assessment. The rating reflects the agency's evaluation of the insurance company's creditworthiness and ability to service its financial obligations.

Regulatory Compliance and Timeline

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating communication was made to both NSE and BSE on February 24, 2026, with the relevant documentation also made available on the company's website at www.canarahsbcclife.com .

CARE Ratings has established specific conditions for the rating validity. The rating must be revalidated if the proposed issue is not made within six months from the initial communication date of February 18, 2026. Additionally, any changes in the size or terms of the proposed issue would require rating revalidation.

Post-Issuance Requirements

The rating agency has outlined comprehensive post-issuance compliance requirements for Canara HSBC Life Insurance. The company must inform CARE Ratings of specific issue details within seven days of placing the instrument, including ISIN, coupon rate, payment dates, redemption terms, and trustee details.

Key Compliance Requirements:

• Submit copies of all issue-related documents including offer document and trust deed
• Provide details of top 10 investors
• Comply with periodic surveillance and review processes
• Maintain cooperation for continuous monitoring throughout the instrument's lifetime

Rating Significance and Outlook

The CARE AA+ stable rating indicates high safety regarding timely servicing of financial obligations. This rating assignment strengthens Canara HSBC Life Insurance's position in the debt capital markets and provides investors with an independent assessment of the company's creditworthiness.

CARE Ratings reserves the right to undertake surveillance and review of the rating periodically, with at least one review annually. The agency may revise, reaffirm, or withdraw the rating based on ongoing assessment of the company's financial position and market conditions.