Fedbank Financial Services Limited has announced that its Board of Directors approved draft documents for a Non-Convertible Debenture (NCD) issuance worth ₹200.00 crores through a circular resolution. The approval covers the draft General Information Document (GID) and Key Information Document (KID) for the proposed private placement of debentures.

NCD Issuance Details

The company plans to issue secured, listed, rated, redeemable senior non-convertible debentures with specific parameters designed for eligible investors.

Regulatory Compliance and Documentation

The board's approval enables the company to file the draft documents with the designated stock exchange for the proposed NCD issuance. The debentures will be offered to one or more prospective eligible investors under the private placement framework. This approval represents a significant step in the company's debt fundraising process, allowing it to proceed with regulatory filings.

Previous Approvals and Timeline

The current NCD issuance forms part of a larger fundraising initiative previously approved by the company's governance bodies:

• Board of Directors granted approval for issuing Listed Non-Convertible Debentures up to ₹2,500.00 crores in one or more tranches, subject to shareholder approval
• Shareholders approved the issuance of Non-Convertible Debentures on private placement basis not exceeding ₹2,500.00 crores in one or more tranches
• Board approved draft GID and KID documents for the current ₹200.00 crore tranche

Market Positioning

The NCDs will be structured as secured instruments with ratings, providing investors with enhanced safety features. The 36-month tenure offers a medium-term investment option for eligible institutional and qualified investors. The listing on BSE will provide liquidity and transparency for the debenture holders.

Fedbank Financial Services has communicated this development to both NSE and BSE under Regulation 30 of the SEBI LODR Regulations, ensuring proper disclosure to market participants and stakeholders.

Fedbank Financial Services Limited has announced the reaffirmation of credit ratings for its debt instruments by two leading rating agencies. The company informed stock exchanges about the credit rating updates received from CRISIL Ratings and ICRA Limited for various financial instruments totaling ₹5,250 crores.

Credit Rating Details

The rating agencies have provided comprehensive assessments across multiple debt instruments. CRISIL Ratings has reaffirmed ratings for both Non-Convertible Debentures and Commercial Paper programs, while ICRA Limited has confirmed its rating for the Commercial Paper facility.

Enhanced Commercial Paper Limits

A significant development in the rating exercise is the enhancement of Commercial Paper limits from both rating agencies. The Commercial Paper programs rated by both CRISIL and ICRA have been increased from ₹1,000 crores to ₹2,000 crores, effectively doubling the company's short-term funding capacity through these instruments.

Rating Significance

According to CRISIL's assessment, securities with the AA- rating are considered to have a high degree of safety regarding timely servicing of financial obligations, carrying very low credit risk. The A1+ rating for Commercial Paper indicates a very strong degree of safety regarding timely payment of financial obligations, representing the lowest credit risk category.

ICRA's A1+ rating for the Commercial Paper program similarly reflects the highest credit quality assessment for short-term debt instruments. The reaffirmation of these ratings across both agencies demonstrates consistent confidence in Fedbank Financial Services' creditworthiness and financial stability.

Regulatory Compliance

The rating intimation was submitted to stock exchanges in compliance with Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed information including various ISIN codes for Non-Convertible Debentures and Commercial Paper programs to ensure complete regulatory transparency.

Validity and Surveillance

Both rating agencies have confirmed that the assigned ratings will remain under continuous surveillance throughout the life of the respective instruments. CRISIL has specified validity periods of 180 days for the NCD rating and 60 days for the Commercial Paper rating from the date of issuance, while ICRA has indicated a three-month validity period for its Commercial Paper rating before requiring revalidation.