Allotment of Secured Redeemable Non-Convertible Debentures on Private Placement basis
BAJAJHFL · price
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Bajaj Housing Finance has allotted 2,00,000 Secured Redeemable NCDs at Rs. 1 lakh each, raising Rs. 2,000.67 crore via private placement. The debentures carry an 8.25% p.a. coupon with annual interest payments and principal repayment due on maturity in May 2031. The tenure is 1,826 days (approximately 5 years). The issue is secured by a first pari-passu charge on the company's book debts and loan receivables with 1.00x security cover. The debentures will be listed on BSE's Wholesale Debt Market segment.
This is a standard debt capital raise by the housing finance company at a market-comparable rate of 8.25%. While it strengthens the company's borrowing profile, it adds to the debt obligations and could have a minor dilutive effect on equity returns through interest costs.