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Bajaj Housing Finance is planning to raise up to INR 10 billion through the reissue of its January 2029 bonds, including a greenshoe option of INR 5 billion. The proposed issuance, carrying a 7.25% coupon, will be offered to investors via commitment bids scheduled in the coming day. Rated AAA by CRISIL, the bonds have a remaining tenure of approximately two years and nine months. The fundraising forms part of broader activity in India's debt market, where multiple non-banking financial companies are tapping institutional investors for capital amid steady credit demand.
Bajaj Housing Finance is set to tap the domestic bond market through the reissue of its January 2029 maturity notes, aiming to raise up to INR 10 billion, according to market participants. The proposed issuance includes a base size of INR 5 billion along with a greenshoe option of an additional INR 5 billion, allowing the company to scale up the offering depending on investor demand. Advertisement
The bonds carry a coupon of 7.25% and have a residual maturity of around two years and nine months. The company has invited commitment bids from investors, with the bidding process scheduled to take place in the coming day. Final pricing for the issue is expected to be determined based on investor response during the bidding process.
The proposed issuance has been assigned a AAA rating by CRISIL, indicating a high degree of creditworthiness and low default risk. The company had not responded to requests for comment at the time of reporting.
The transaction is part of a broader pipeline of bond issuances in the Indian market, with several non-banking financial companies approaching investors to secure funding. Among other issuers active in the market, Bajaj Finance is also planning a bond sale with a three-year tenure, targeting INR 30 billion including a greenshoe option. Similarly, Muthoot Finance is seeking to raise up to INR 30 billion through bonds with a tenure of three years and two months, offering a coupon of 8.45%, with ratings in the AA+ category from CRISIL and ICRA.
Such issuances reflect sustained demand for fixed-income instruments among institutional investors, particularly for highly rated corporate debt. For issuers, the bond market continues to serve as a key funding avenue alongside bank lending, enabling diversification of liabilities and access to longer-duration capital.
The reissue structure allows companies to raise additional funds from an existing bond series rather than launching a new instrument, thereby consolidating liquidity within a single issuance. In the case of Bajaj Housing Finance, the approach may also support pricing efficiency and investor familiarity, given the established track record of the bond.
The current round of issuances underscores continued activity in India's corporate debt market, with issuers calibrating deal sizes and tenures in response to evolving liquidity conditions and investor appetite.
Source - Reuters
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