HDB Financial Services , a prominent financial services company, has successfully raised Rs. 200 crore through the issuance of Non-Convertible Debentures (NCDs) via private placement. The company's Debenture Allotment Committee approved the allotment of 20,000 secured redeemable NCDs on August 14, 2025.

Key Details of the NCD Issuance

Security and Asset Cover

The NCDs are secured by a first and exclusive charge through hypothecation over the company's present and future receivables. HDB Financial Services has committed to maintaining a minimum asset cover of 1.0 times the principal outstanding and accrued interest throughout the tenure of the NCDs.

Coupon Payment Schedule

The company has outlined the following schedule for coupon payments:

1. First Coupon: September 22, 2025
2. Second Coupon: September 22, 2026
3. Third Coupon: September 22, 2027
4. Fourth Coupon and Principal Repayment: September 22, 2028

Regulatory Compliance

This issuance is in line with the regulatory requirements, as intimated by HDB Financial Services to the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The successful raising of funds through this NCD issuance demonstrates HDB Financial Services' strong position in the debt market and its ability to attract institutional investors. This capital infusion is expected to support the company's growth plans and strengthen its financial position in the competitive financial services sector.

HDB Financial Services , a prominent financial services company, has successfully raised Rs. 500 crore through the private placement of Non-Convertible Debentures (NCDs). The company's Debenture Allotment Committee approved the issuance on August 7, 2025, marking a significant move in its financial strategy.

Key Details of the NCD Issuance

Coupon Payment Schedule

The company has outlined the following schedule for coupon payments:

1. First Coupon: January 5, 2026
2. Second Coupon: January 5, 2027
3. Third Coupon and Principal Repayment: January 5, 2028

Security and Asset Cover

HDB Financial Services has secured these NCDs with a first and exclusive charge by way of hypothecation over its present and future receivables. The company is committed to maintaining a minimum asset cover of 1.0 time of the principal outstanding and interest accrued but not paid throughout the tenure of the NCDs.

Listing and Transparency

In line with regulatory requirements, HDB Financial Services plans to list these NCDs on the Wholesale Debt Market Segment of BSE Limited. This move enhances transparency and provides liquidity options for investors.

Implications for HDB Financial Services

This successful NCD issuance demonstrates HDB Financial Services' strong standing in the debt market and its ability to attract institutional investors. The funds raised are likely to bolster the company's capital base, potentially supporting its lending activities and overall business growth.

The private placement of NCDs is a common strategy employed by financial institutions to raise long-term capital. For HDB Financial Services, this Rs. 500 crore infusion could play a crucial role in expanding its operations, improving its asset-liability management, or funding new initiatives in the competitive financial services sector.