Aavas Financiers Limited has secured a provisional [ICRA]AAA(SO) rating from ICRA Limited for Pass-Through Certificates (PTCs) worth Rs. 495.61 crore. The rating pertains to Series A1 PTCs to be issued by Prime Home Loan Trust V, a Special Purpose Vehicle under the Mortgage-Backed Securities transaction originated by the company.

Rating Details and Structure

The provisional rating was assigned on March 20, 2026, following a rating agreement dated March 18, 2026. The PTCs are backed by a pool of home loan receivables, representing a securitization of the company's mortgage portfolio.

Rating Significance and Definition

ICRA defines the [ICRA]AAA(SO) rating as instruments considered to have the highest degree of safety regarding timely servicing of financial obligations, carrying the lowest credit risk. The structured finance rating factors in the estimate of relative potential loss to investors, considering credit enhancements over the instrument's tenure.

The "SO" suffix stands for Structured Obligation, indicating that the rating is specific to the rated issue, its terms, and structure. This rating does not represent ICRA's opinion on the general credit quality of Aavas Financiers as an issuer.

Conditions and Requirements

The provisional rating is subject to several conditions that must be fulfilled before finalization:

• Fulfillment of all structural conditions
• Review of transaction documentation by ICRA
• Confirmation of PTCs yield
• Legal opinion on transaction documentation
• Due diligence and audit report of the loan pool

Regulatory Compliance

Aavas Financiers has informed the stock exchanges about this development in compliance with Regulation 30(6) and 51 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company must communicate acceptance or non-acceptance of the assigned rating by March 27, 2026, as per SEBI requirements.

Transaction Structure

The securitization transaction involves Prime Home Loan Trust V as the SPV, with IDBI Trusteeship Services Limited serving in the trustee capacity. This structure allows Aavas Financiers to monetize its home loan portfolio while transferring credit risk to investors in the PTCs.

AAVAS Financiers Limited has received an Environmental, Social, and Governance (ESG) rating from SES ESG Research Private Limited, a SEBI registered ESG Rating Provider. The company disclosed this development to stock exchanges under regulatory compliance requirements on March 18, 2026.

ESG Rating Details

SES ESG Research Private Limited has assigned an ESG Score of 77.7 to AAVAS Financiers, categorized as Medium rating. The assessment was conducted independently by the rating agency without any direct engagement from the company.

Rating Methodology and Timeline

The ESG rating was based on Financial Year 2024-25 disclosures and other publicly available information. SES ESG conducted this assessment independently, highlighting that AAVAS Financiers did not specifically engage with the rating provider for this evaluation.

The event occurred on March 17, 2026 at 08:41 P.M., with the company making the formal disclosure to exchanges the following day through its Company Secretary and Compliance Officer, Saurabh Sharma.

Regulatory Compliance

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events and information that could impact investor decisions.

AAVAS Financiers has made the ESG rating information available on its official website at the ESG reporting section, ensuring transparency and accessibility for stakeholders and investors interested in the company's sustainability performance.