LIC subscribes to Bajaj Finance’s ₹5,000 crore NCDs
The Life Insurance Corporation of India (LIC) has invested ₹5,000 crore in Bajaj Finance by subscribing to non-convertible debentures. These instruments carry an 8.15% coupon rate and are set to mature in 2036.
Why it matters
This significant capital infusion reflects institutional confidence in major non-banking financial companies and provides Bajaj Finance with long-term liquidity for business operations.
The Life Insurance Corporation of India (LIC) has subscribed to ₹5,000 crore nonconvertible debentures (NCDs) of Bajaj Finance.
It has subscribed to five lakh NCDs, of face value of ₹1 lakh each, of the deposit-taking non-banking financial company, totalling ₹5,000 crore, the State-owned insurer said in a filing.
Separately, Bajaj Finance in a filing said allotment of the NCDs aggregating to ₹5,000 crore on a private placement basis follows its debenture allotment committee’s approval. The instruments carry a coupon rate of 8.15% per annum and a tenure of 3,653 days (ten years). The first coupon payment will be on Aug 27, 2027 and annually thereafter. The maturity date of the NCDs is August 27, 2036.
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