Equitas Small Finance Bank Limited has successfully obtained listing approval for its Rs 500 crore bond issue, marking a significant milestone in its capital raising efforts. The bank has issued 50,000 non-convertible debentures (NCDs) with a face value of Rs 1 lakh each through private placement.

Bond Details

The bonds, classified as Lower Tier II instruments, are rated, unsecured, subordinated, and redeemable. They have received ratings of IND AA- from India Ratings and CARE AA- from Care Ratings, both with a stable outlook. The debentures were allotted on July 31, 2025, and subsequently listed on the Bombay Stock Exchange (BSE) on August 4, 2025.

Key Features

• ISIN: INE063P08120
• Issue Size: Rs 500.00 crores
• Face Value: Rs 1,00,000 per debenture
• Interest Rate: 9.60% per annum
• Interest Payment: Annual, Rs 9,600 per debenture
• First Interest Payment Date: July 31, 2026
• Maturity Date: July 31, 2030

Interest Payment Schedule

The bank has outlined the following record dates for interest payments:

Credit Rating and Outlook

Both India Ratings and Research Private Limited and Care Ratings Limited have assigned a rating of AA- with a stable outlook to these bonds. These ratings were issued on July 9, 2025, and July 10, 2025, respectively, and were verified on August 1, 2025.

Additional Corporate Actions

In a separate development, Equitas Small Finance Bank also announced the allotment of 45,804 equity shares on August 4, 2025, under its Employee Stock Option Scheme, 2019. This allotment has increased the bank's paid-up share capital from Rs. 11,40,39,66,470 to Rs. 11,40,44,24,510.

The successful bond listing and the recent equity allotment demonstrate Equitas Small Finance Bank's ongoing efforts to strengthen its capital base and provide incentives to its employees. These moves are likely to support the bank's growth strategies and operational capabilities in the coming years.

Equitas Small Finance Bank has successfully strengthened its capital position by raising ₹500 crore through the allotment of Tier II Non-Convertible Debentures (NCDs). This strategic move is set to enhance the bank's Tier II capital base, potentially improving its overall financial stability and lending capacity.

Key Details of the NCD Issuance

The bank has allotted 50,000 Rated, Listed, Unsecured, Subordinated, Redeemable, Transferable, Fully Paid Up Lower Tier II Bonds in the nature of Non-Convertible Debentures. Here are the essential details of the issuance:

Terms and Structure

The NCDs come with the following terms:

• Interest Payment: Annual payments on July 31st each year
• Redemption: Bullet payment at par on maturity
• Security: Unsecured
• Special Rights: No special rights or privileges attached to the instrument

Significance for Equitas Small Finance Bank

This capital raising exercise is a significant move for Equitas Small Finance Bank, as it:

1. Strengthens the bank's Tier II capital base
2. Potentially enhances the bank's ability to expand its lending activities
3. Demonstrates investor confidence in the bank's financial health and future prospects

Regulatory Compliance

The NCD issuance has been conducted in compliance with the Securities and Exchange Board of India (SEBI) regulations. The bank has made the necessary disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This successful fundraising effort underscores Equitas Small Finance Bank's proactive approach to capital management and its commitment to maintaining a strong financial foundation to support its growth objectives in the competitive banking sector.