Bajaj Housing Finance Limited (BHFL) has launched a major debt offering with the issuance of ₹1,000.03 crore worth of secured Non-Convertible Debentures (NCDs). The company has issued 1,00,000 NCDs with a face value of ₹1,00,000 each under ISIN INE377Y07557. These debentures are proposed to be listed on the Wholesale Debt Market (WDM) Segment of BSE Limited, opening up new investment avenues for institutional and high-net-worth investors.

Instrument Details and Structure

The newly issued NCDs have a tenure of 665 days, with the date of allotment on 2nd May 2025 and the maturity date on 26th February 2027. Investors in these instruments can expect a fixed coupon rate of 7.14% per annum, which will be paid annually and on maturity.

The coupon payment schedule is clearly outlined:

• First interest payment is scheduled for 26th February 2026

• Second interest and principal payment will be made together on 26th February 2027

This structure provides predictable returns and a defined exit timeline, making it attractive to investors seeking stable, fixed-income products in the corporate bond market.

Security Cover and Asset Backing

To ensure the safety of investors’ capital and interest payments, Bajaj Housing Finance has provided a first pari-passu charge on book debts/loan receivables as collateral. Importantly, this security cover is equivalent to 1.00 times the aggregate outstanding value of the debentures issued under this scheme. This means the entire investment is fully backed by recoverable assets, enhancing the creditworthiness of the instrument.

There are no special rights, privileges, or preferential treatments attached to these NCDs, and the debentures are redeemable only at maturity, providing clarity to investors on repayment.

No Defaults or Payment Delays

As per the information shared, there is no history of delay or default in the payment of interest or principal by Bajaj Housing Finance. There have been no comments or objections from any authority regarding any past delays in payments, indicating the company's strong financial discipline and timely servicing of debt.

Market Listing and Liquidity Options

The NCDs are proposed to be listed on the BSE’s Wholesale Debt Market (WDM) segment, allowing institutional investors access to a secondary market for liquidity. Although individual investors might not directly access this segment, the listing ensures transparency and regulatory oversight by the exchange, which enhances the credibility and trust in the issuance.

Implications for Investors

Investors looking for fixed-income opportunities with moderate risk may find this offering particularly appealing due to the following reasons:

• Attractive annual interest rate of 7.14%, which is higher than many traditional fixed deposit rates.

• Backed by book debts, ensuring asset-based protection.

• Defined tenure of 665 days, ideal for medium-term investments.

• Regulated and listed instrument, increasing investor confidence.

Additionally, the instrument is structured to provide cash flows at regular intervals and ensure capital protection at maturity, which makes it suitable for conservative and long-term investors, especially those seeking predictable returns without market-linked volatility.

Strategic Financing for Bajaj Housing Finance

From the company’s perspective, this NCD issue helps diversify funding sources beyond traditional banking channels. Bajaj Housing Finance can raise capital efficiently at a pre-determined interest rate while avoiding dilution of equity.

The funds raised can be expected to support:

• Expansion of retail loan portfolio

• Strengthening of the capital structure

• Ensuring long-term asset-liability management (ALM)

Bajaj Housing Finance continues to maintain a solid reputation in the housing finance sector, and this capital raise underlines its growth trajectory and prudent financial planning.

Conclusion

This ₹1000 crore NCD issuance by Bajaj Housing Finance Limited is a clear reflection of the company’s robust financial health, strategic capital planning, and investor-centric approach. With a 7.14% annual coupon, full security cover, and BSE WDM listing, this instrument stands out as a stable and credible option for fixed-income investors looking for medium-term debt securities.

As interest in corporate bonds and NCDs continues to rise among both institutional and individual investors, such offerings from reputable NBFCs like Bajaj Housing Finance help deepen the domestic debt market and support the broader objective of financial market development in India.

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