Bajaj Finance raises ₹4,505 crore through secured NCDs
What's the deal? Bajaj Finance Limited has allotted 450,000 secured redeemable non-convertible debentures (NCDs) on a private placement basis, raising ₹4,505.15 crore (roughly $541M). The allotment, finalised on June 12, 2026, is split into two tranches with different tenures and coupon rates.
Option I covers 200,000 NCDs worth ₹2,000.90 crore, maturing in June 2029 at a coupon rate of 7.93%. Option II covers 250,000 NCDs worth ₹2,504.25 crore, maturing in May 2031 at 8.00%.
Each NCD carries a face value of ₹1 lakh. Both tranches are proposed to be listed on the Wholesale Debt Market Segment of BSEDealroom has a profile for this one. Try Dealroom → Limited.
Why now? India's non-banking financial companies (NBFCs) have been tapping debt markets aggressively as credit demand surges across the economy. Bajaj Finance, one of the country's largest NBFCs, is locking in medium-term funding at sub-8% rates — a window that may not stay open if the Reserve Bank of India shifts its monetary stance.
The two-tranche structure — one three-year, one five-year — suggests the company is matching its borrowing maturities to its loan book while diversifying its funding timeline.
What could go wrong? The NCDs are secured by a first pari-passu charge on book debts and loan receivables, with security cover of at least 1.00 times the outstanding debenture value. That thin coverage ratio means investors are relying heavily on Bajaj Finance's credit quality rather than on excess collateral.
Any deterioration in asset quality — particularly in unsecured consumer lending, where Bajaj Finance has significant exposure — could pressure both the company's borrowing costs and investor confidence in future placements.
The signal: Bajaj Finance's ability to raise over ₹4,500 crore in secured debt at sub-8% coupon rates underscores the privileged funding position that mature, large-cap Indian NBFCs enjoy — even as smaller lenders face tighter market access. With the company's extensive exposure to consumer durables, two-wheelers, and unsecured personal loans, locking in medium-term funding at these rates is a bet that India's retail credit boom still has room to run.
Read more: Investywise
