ESAF Small Finance Bank to Consider Fundraising via Tier II Bonds

ESAF Small Finance Bank is set to convene a board meeting to discuss a proposal for raising funds through the issuance of Tier II bonds, specifically non-convertible debentures, on a preferential basis via private placement. This move aligns with the bank's strategy to bolster its capital base and a...

ESAF Small Finance Bank is set to convene a board meeting to discuss a proposal for raising funds through the issuance of Tier II bonds, specifically non-convertible debentures, on a preferential basis via private placement. This move aligns with the bank's strategy to bolster its capital base and address ongoing challenges in the microfinance segment. Recently, CARE Ratings revised the outlook on ESAF's bonds to negative due to asset quality pressures and profitability concerns. Despite these challenges, the bank maintains a robust capital adequacy ratio, which is crucial for its growth plans. The proposed fundraising will help ESAF Small Finance Bank navigate current market conditions and support its mission of financial inclusion. Source: Reuters, Economic Times