Bajaj Finance allots ₹5,000 crore in privately placed NCDs
Bajaj Finance has allotted 500,000 non-convertible debentures of ₹1 lakh each through private placement. The NCDs carry an 8.15% annual coupon and mature on Aug. 27, 2036.
What happened
Bajaj Finance allotted Rs 5,000 crore of privately placed NCDs carrying an 8.15% coupon and maturing in 2036, strengthening funding for its consumer-finance
Key facts
- Rs 5,000 crore aggregate NCD issuance
- 500,000 NCDs
- Rs 1 lakh face value per NCD
- 8.15% annual coupon
- Aug. 27, 2036 maturity
- Q1 FY27 consolidated profit: Rs 5,986 crore, up 27.4% YoY
- Q1 FY27 net interest income: Rs 12,571 crore, up 23% YoY
Why this matters
The long-dated debt gives Bajaj Finance additional balance-sheet flexibility to fund expansion, partnerships or portfolio growth without immediate equity dilution.
What to watch
- Net interest margin and cost-of-funds trend in the next quarterly results.
- AUM growth versus the pace of incremental borrowings and liquidity buildup.
- Asset-quality indicators, especially Stage 2/Stage 3 assets, write-offs and credit-cost guidance.
- Deposit growth and the share of fixed deposits versus market borrowings.
- RBI policy-rate changes and movements in corporate bond spreads.
- Further NCD issuances, refinancing activity, rating-agency commentary and ALM disclosures.
- Use part of the proceeds to fund seasonal consumer-finance demand, including electronics, mobility and festive purchases.
- Increase emphasis on secured, cross-sold and repeat-customer loans to preserve risk-adjusted yields above the fixed borrowing cost.
- Potentially raise additional diversified funding through deposits, bank lines, securitisation or further debt issuance to maintain liquidity buffers.
- Manage duration and interest-rate exposure through asset pricing, tenor mix and hedging where needed.