The proposed NCD issue will comprise Listed, Rated, Taxable, Unsecured, Transferable, Redeemable and Fully Paid Up Basel II-compliant Lower Tier II subordinated bonds.
“…we hereby inform that the board of directors of the bank, at its meeting held on Wednesday, September 23, 2026, inter alia, considered and approved the proposal for raising Tier II Capital through the private placement of Unsecured, Redeemable, Non-Convertible Debentures (“NCDs”) aggregating up to ₹500 Crores (Rupees Five Hundred Crores only), in one or more tranches, up to the conclusion of the next Annual General Meeting of the Bank,” the bank said in a stock exchange filing.
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The issuance will be within the overall borrowing limit approved by shareholders at the bank’s 10th Annual General Meeting held on August 14, 2026. The bank said the proposed fundraise is in line with its business plan for the financial year 2026-27.
The NCDs will be issued in one or more tranches through private placement, with the total issue size capped at ₹500 crore. The proposed securities are to be listed either on the Negotiated Trade Reporting Platform under the New Debt Market of the National Stock Exchange of India Ltd or the Wholesale Debt Market of BSE Ltd.
The tenure, allotment and maturity dates, coupon or interest rate, payment schedule, principal repayment and security or charge over assets will be set out in the relevant transaction documents.
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The Board has authorised the Management Committee to determine the terms and conditions of the issue and undertake all necessary actions related to the issuance of the NCDs, including ancillary matters.
The bank said there is currently no delay or default in payment of interest or principal, while details of redemption will be specified in the relevant transaction documents.
Shares of ESAF Small Finance Bank Ltd ended at ₹40.99, up by ₹1.77, or 4.51%, on the BSE.
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