Satin Creditcare’s New NCDs: Where Security Meets Opportunity at 10.75%

In a significant move to bolster its funding base, Satin Creditcare Network Limited announced that its Working Committee of the Board of Directors has approved the issuance of 4,410 senior, secured, rated, listed, redeemable, and transferable non-convertible debentures (NCDs), each with a face value of INR 1,00,000, aggregating to INR 44.1 crore. The decision was taken at the committee meeting held on Tuesday, July 1, 2025.

 

Key Highlights:

 

Issue Details:

Instrument: Senior, secured, rated, listed, redeemable, transferable NCDs

Face Value: INR 1,00,000 per debenture

Total Issue Size: INR 44.1 crore

Denomination: Indian Rupees

Mode: Private placement

 

Tenure and Redemption:

Deemed Date of Allotment: July 15, 2025

Maturity Date: July 15, 2030 (60 months from allotment)

Redemption: Two tranches—July 15, 2028 (Initial Redemption Date) and July 15, 2030 (Final Redemption Date), on a pari passu basis

 

Interest Structure:

Coupon Rate: 10.75% per annum

Interest Payment: Semi-annual, on January 15 and July 15 each year

Step-up Clause: Additional 2% per annum interest in case of payment default until rectified

Security:

Charge: First-ranking exclusive charge over specific book debts/loan receivables

Security Cover: Minimum 1.0x of outstanding debenture amounts

 

Listing and Rating:

Listing: Proposed to be listed on stock exchanges

Rating: IVR A/Stable by Infomerics, reflecting stable outlook and established track record, though moderated by average asset quality and sectoral risks

 

Purpose:

To support general corporate purposes and refinancing of existing financial indebtedness

 

This NCD issue is part of the broader board approval to raise up to INR 5,000 crore through NCDs in various tranches, reflecting Satin Creditcare’s ongoing strategy to diversify its funding sources and strengthen its balance sheet.

 

Source: Infomerics Ratings Press Release, July 1, 2025