ESAF small finance bank to raise ₹150 crore via bond issuance

ESAF Small Finance Bank's board of directors, in a meeting held on November 3, 2025, approved a proposal to raise funds through the issuance of listed, rated, taxable, unsecured, transferable, redeemable, fully paid-up, Basel II compliant lower tier II subordinated bonds. These non-convertible debentures (Tier II Bonds) will be issued on a private placement basis, aggregating up to ₹150 crore, within an overall limit of ₹1,000 crore previously approved by shareholders on September 24, 2025.

The issuance will consist of 15,000 debentures, each with a face value of ₹1,00,000, totaling ₹150,00,00,000. These debentures will bear an interest rate not exceeding 11.30% per annum and have a tenure of 69 months, with a deemed allotment date of November 10, 2025, and a maturity date of August 10, 2031. The NCDs are proposed to be listed on the Negotiated Trade Reporting Platform under the New Debt Market (NTRP) of the National Stock Exchange of India Limited (NSE).

The board has also authorized the management committee to determine the detailed terms and conditions for any balance issuances within the approved limit, including timing, amount, coupon, and other related matters.