Regency Fincorp Weighs Debenture Issuance to Bolster Funding Strategy for FY26

Regency Fincorp Ltd has announced that its Board of Directors will consider the issuance of secured and unsecured non-convertible debentures (NCDs) in one or more tranches during the financial year 2025–26. The move is part of the company’s broader capital-raising strategy aimed at strengthening its lending portfolio and operational liquidity.

 

Key Highlights:

 

- Proposed issuance includes listed and unlisted, redeemable NCDs via private placement

 

- Aggregate value may go up to INR 200 crore, subject to shareholder approval

 

- Instruments may carry fixed interest rates with monthly coupon payments

 

- Tenure expected to span 15 months, with principal repayment in equal monthly installments

 

- Security cover to include hypothecation over performing loan receivables with a 1.2x coverage ratio

 

Strategic Outlook:

 

The debenture plan reflects Regency’s intent to diversify funding sources and support its NBFC operations amid evolving credit demand.

 

Sources: MarketScreener, BSE Filings, Economic Times, Regency Fincorp Corporate Announcements.