Canara HSBC Life Insurance Company Limited has successfully completed the allotment of ₹250 crore worth of non-convertible debentures through private placement, as announced to the stock exchanges on 13th March 2026. The Debt Raising Committee of the Board approved the allotment during a meeting held from 12:00 noon to 12:10 pm on the same day.

Debenture Structure and Terms

The company allotted 25,000 unsecured, subordinated, listed, rated, redeemable, non-cumulative, fully paid-up, non-convertible debentures in the nature of subordinated debt. Each debenture carries a face value of ₹1,00,000, bringing the total issue size to ₹250,00,00,000.

Interest Payment Schedule

The debentures offer a coupon rate of 8.15% per annum with annual interest payments scheduled on 13th March each year. The interest payment dates span from 13th March 2027 through 13th March 2036, providing investors with regular annual income over the 10-year tenure.

Call Option and Redemption Features

The debentures include call option provisions that allow the company to redeem the securities at the end of five years from the allotment date and every year thereafter. The redemption will be at par value of ₹1,00,000 per debenture plus accrued coupon rate. This feature provides the company with flexibility in managing its debt structure based on market conditions.

Listing and Regulatory Compliance

The debentures will be listed on the National Stock Exchange of India Limited, providing liquidity options for investors. The allotment was conducted under the General Information Document and Key Information Document in compliance with SEBI regulations. As unsecured debentures, no charge or security has been created over the company's assets.

Default Protection Measures

In case of payment default extending beyond three months from the due date, the company has committed to pay interest at a rate 2% per annum above the standard interest rate. This provision continues until the default is cured to the satisfaction of the Debenture Trustee, providing additional protection for debenture holders.

Canara HSBC Life Insurance Company Limited has entered into a strategic Corporate Agency Agreement with Bihar Gramin Bank on 11th March 2026, expanding its distribution network for insurance products. The partnership represents a significant step in the company's efforts to enhance market reach through banking channel partnerships.

Partnership Details

The agreement establishes Bihar Gramin Bank as a corporate agent for distributing Canara HSBC Life's insurance products. Bihar Gramin Bank is a banking company constituted under Section 3 of Regional Rural Bank Act, 1976, and operates as an associate of Punjab National Bank.

Commercial Arrangements

Under the terms of the agreement, Canara HSBC Life will compensate Bihar Gramin Bank through a commission structure aligned with the company's Board-approved commission policy. The partnership does not involve any shareholding arrangements between the parties, with both entities maintaining their independent operational structures.

Regulatory Compliance

The company has confirmed that this transaction does not fall within the scope of related party transactions, despite Bihar Gramin Bank's association with Punjab National Bank. The agreement has been structured to ensure compliance with regulatory requirements and maintains arm's length commercial terms.

Strategic Implications

This partnership aligns with Canara HSBC Life's distribution strategy of leveraging banking networks to reach customers across different market segments. The collaboration with Bihar Gramin Bank, which serves rural and semi-urban markets, potentially enhances the company's presence in these underserved segments. The agreement follows standard corporate agency frameworks without creating any special rights or complex structural arrangements between the parties.