ESAF Small Finance Bank to Raise ₹150 Crore via Tier II Bonds at 11.30% Interest

ESAF Small Finance Bank announced plans to strengthen its capital base through the issuance of Tier II bonds. The Board of Directors has approved raising ₹150 crore via Basel II compliant subordinated bonds in the form of non-convertible debentures (NCDs) on a private placement basis.

Key Details of the Issuance

• Issue Size: ₹150 crore
• Instrument Type: Listed, Rated, Taxable, Unsecured, Transferable, Redeemable NCDs
• Compliance: Basel II Lower Tier II Subordinated Bonds
• Interest Rate:30% per annum
• Tenure: 69 months
• Maturity Date: August 10, 2031
• Listing: Proposed on NSE’s Negotiated Trade Reporting Platform

This issuance forms part of the bank’s broader capital-raising strategy approved by shareholders, with an overall limit of ₹1,000 crore for such instruments.

Strategic Framework

The Board has authorised its Management Committee to decide on future issuances within the ₹1,000 crore limit, including timing, amount, and coupon rates. This flexibility ensures efficient execution of capital-raising plans.

Investor Opportunity

The Tier II bonds offer a fixed coupon rate of 11.30% per annum. Proposed listing on NSE’s Negotiated Trade Reporting Platform under the New Debt Market segment could provide liquidity for investors.

ESAF Small Finance Bank Share Price Performance

On November 3, 2025, ESAF Small Finance Bank share price opened at ₹28.40, compared to the previous close of ₹28.10. During the session, the stock touched a high of ₹28.40 and a low of ₹27.91. At 3:40 PM IST, it was trading at ₹27.98, down by 0.43%.

The stock recorded a traded volume of 2.17 lakh shares and a traded value of ₹0.61 crore on the NSE. The market capitalisation stood at ₹1,442.50 crore. Over the past 52 weeks, ESAF Small Finance Bank has hit a high of ₹46.02 and a low of ₹24.31.

Read More: Indian Bonds Attract Global Investors After RBI's Rupee Defence.

Conclusion

ESAF Small Finance Bank’s ₹150 crore Tier II bond issuance underscores its commitment to strengthening its capital structure and supporting future growth. With the coupon rates and proposed listing, the move aligns with the bank’s long-term financial strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.