CORPORATE ANNOUNCEMENTFinancial Services
Bajaj Housing Finance Ltd. makes a corporate announcement
Bajaj Housing Finance Ltd.BAJAJHFL
TL;DR
The cited allotment notice does not establish a single ₹3,002.68 crore NCD issue. It supports a ₹1,501.0655 crore allotment; therefore, the coupon and tenor of any second tranche within the ₹3,002.68 crore aggregate cannot be confirmed from the cited filings.
What are the specific coupon rates, tenor, and redemption terms for the ₹3,002.68 crore NCD allotment, and how does the effective cost of this issuance compare to the company's weighted average cost of borrowing (WACB) reported in the most recent quarterly financial results?
The cited allotment notice does not establish a single ₹3,002.68 crore NCD issue. It supports a ₹1,501.0655 crore allotment; therefore, the coupon and tenor of any second tranche within the ₹3,002.68 crore aggregate cannot be confirmed from the cited filings.
Supported NCD tranche
Cost comparison
The Q2 FY27 investor presentation reports cost of funds of 7.0%, down from 7.2% in Q1 FY27; a separately labelled WACB figure could not be confirmed in the cited quarterly results [3].
- Coupon comparison: 7.53% versus 7.0% cost of funds = 53 basis points higher, derived from the reported rates [1] [3].
- Simple effective-cost proxy: the NCDs have a ₹1,500 Cr face value—2,00,000 debentures of ₹1,00,000 each—against ₹1,501.0655 Cr of gross allotment proceeds [1]. Annual coupon cash cost is therefore ₹112.95 Cr, and ₹112.95 Cr divided by ₹1,501.0655 Cr implies approximately 7.52% before fees and other issuance costs. This is around 52 basis points above the reported 7.0% cost of funds.
- Management separately referred to an incremental 10-year NCD cost of approximately 7.04% post-hedging during the Q2 call [4]. Against that marginal borrowing reference, the 7.53% coupon is approximately 49 basis points higher, although the tenor and metric are not directly identical.
The key limitation is that an exact issuance yield or WACB comparison would require the complete ₹3,002.68 crore tranche schedule, issue prices, fees and the company’s explicitly reported WACB definition.
| Term | Detail |
|---|---|
| Issue size | ₹1,501.0655 Cr, including premium [1] |
| Coupon | 7.53% p.a. [1] |
| Tenor | 1,179 days; allotted 7 July 2026 and maturing 28 September 2029 [1] |
| Interest payment | First payment on 28 September 2026, followed by annual payments on 28 September 2027 and 28 September 2028 [1] |
| Redemption | Principal repayment on 28 September 2029; redeemable on maturity [1] [2] |
| Security | First pari-passu charge over book debts/loan receivables, with 1.00x security cover [1] |
Sources
- [1]Intimation of Allotment of Secured NCDs aggregating to ₹1,501.0655 Crore on Private Placement Basis — 2026-07-07T12:19:21, p.1
- [2]Intimation of Allotment of Secured NCDs aggregating to ₹1,501.0655 Crore on Private Placement Basis — 2026-07-07T12:19:21, p.2
- [3]Bajaj Housing Finance Investor Presentation for Q2 FY2027 — 2026-10-16T16:18:23, p.6
- [4]Bajaj Housing Finance Q2 FY2027 Earnings Conference Call Transcript — 2026-10-24T14:45:09, p.13
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