ALLOTMENT OF UNSECURED, RATED, SUBORDINATED, LISTED, REDEEMABLE, NON-CONVERTIBLE DEBENTURES FOR AN AGGREGATE SUM OF RUPEES 45O CRORES ON A PRIVATE PLACEMENT BASIS.
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Fedbank Financial Services has allotted 45,000 unsecured, subordinated, listed, redeemable non-convertible debentures (NCDs) on a private placement basis, raising Rs. 450 Crores in total. The issue was split into two tranches: Series I of 25,000 NCDs worth Rs. 250 Crores at an 8.85% annual coupon for a 7 years 7 months tenor, and Series II of 20,000 NCDs worth Rs. 200 Crores at an 8.90% annual coupon for a 7 years 8 months tenor. Both series carry a face value of Rs. 1,00,000 each, with interest payable annually, and the NCDs will be listed on BSE. This is part of a larger Board-approved plan to raise up to Rs. 2,500 Crores through NCDs in multiple tranches, with shareholder approval already obtained in September 2025.
This Rs. 450 Crore NCD raise strengthens Fedbank Financial's capital base, with subordinated debt likely qualifying as Tier 2 capital for the NBFC — supporting future lending growth. For shareholders, this is a neutral-to-slightly-positive development as it funds business expansion without diluting equity, though it adds to interest obligations at 8.85–8.90%.