Equitas Small Finance Bank Ltd (Equitas SFB), in a significant fundraising decision, has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹500 crore, including a green shoe option of ₹250 crore, during its board meeting held on July 21, 2025. The NCDs will be listed, unsecured, redeemable, and fully paid-up, and will qualify as Lower Tier II Capital under the Basel II capital adequacy framework.

The decision was communicated to both the National Stock Exchange of India Limited (NSE) and the BSE Limited, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The board meeting commenced at 12:30 P.M. and concluded at 1:40 P.M., as per the exchange filing by the Company Secretary, N Ramanathan.

???? Key terms of the NCD Issue:

• Instrument: Rated, Listed, Unsecured, Subordinated, Redeemable, Fully Paid-Up Non-Convertible Debentures.

• Total Issue Size: ₹500 crore, with a green shoe option of ₹250 crore.

• Face Value per Debenture: ₹1,00,000.

• Mode of Issuance: Private placement to eligible investors.

• Listing: To be listed on BSE Limited.

• Purpose: Capital augmentation; categorized as Lower Tier II Capital under Basel II.

• Security: The debentures are unsecured.

• Special Rights: None.

• Delay/Default History: Not applicable.

The tenure, interest/coupon rate, and redemption schedule of the instruments will be decided by the Board in due course and communicated through further updates.

This issuance is part of the bank's strategy to maintain capital adequacy while supporting business growth, especially in the backdrop of continued regulatory tightening and rising demand for capital among small finance institutions.

???? Regulatory Compliance

The disclosure includes the format and specifics required under SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The issuance complies fully with the listing obligations for capital instruments and will be executed via private placement.

The move indicates the bank's continued focus on strengthening its capital structure, managing leverage, and tapping into debt markets for cost-effective fundraising.

???? About Equitas Small Finance Bank

Equitas SFB is one of India’s prominent small finance banks that focuses on inclusive banking, catering to underserved segments including micro and small businesses. It offers a full range of products including savings accounts, loans, fixed deposits, and digital banking services.

The bank is listed with stock symbols EQUITASBNK (equity) and 976218 (debt). Its previous fundraising activity and regulatory filings are available on its official website, www.equitasbank.com.

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