Bajaj Housing plans to sell up to INR25B 4-year bond

Bajaj Housing Finance Limited is preparing to issue a new bond offering with a maximum size of INR25 billion (INR25,000 crore), according to available data. The proposed bond will have a four-year maturity and will be structured as a secured, rated, and redeemable non-convertible debenture. The coupon rate for the bond is expected to be in the range of 7.08% to 8.25%, based on previous offerings and recent market activity(https://www.marketscreener.com/news/india-new-issue-bajaj-housing-finance-accepts-bids-for-2031-bond-reissue-bankers-say-ce7f5cd8d08ef32c). The company has previously issued similar instruments with AAA ratings from CRISIL, indicating strong credit quality.

The bond will be issued through private placement, with Catalyst Trusteeship Limited serving as the debenture trustee. Investors should note that the bond will not offer a put option, meaning cannot be returned to issuer. The interest will be paid annually, and the face value of each bond is set at ₹100,000.

Bajaj Housing Finance, a subsidiary of Bajaj Finance Limited, operates in the housing finance sector and provides loans for residential and commercial property purchases, construction, and renovations. The company has a history of issuing debt through private placements, and this offering is expected to follow a similar structure. Investors are advised to consider the tax implications, including the 10% TDS on interest income, effective from April 2023.