Usha Financial Approves 13.15% NCD Issuance

Kalpana Kanungo - Mumbai Bureau Sep 15, 2026 1,400 Views

Usha Financial Services has received board approval to issue secured non-convertible debentures carrying a 13.15% coupon rate on a private placement basis. The capital raised will strengthen the NBFC's balance sheet and expand its credit disbursement capabilities for MSME and corporate borrowers across India.

NEW DELHI — Non-banking financial company Usha Financial Services Limited has officially announced that its board of directors has approved the issuance of rated, listed, secured, redeemable non-convertible debentures (NCDs) carrying an annual coupon rate of 13.15%. Disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the debt instrument placement is structured to optimize the company's capital composition and fund ongoing micro-enterprise lending operations.

The capital mobilization effort forms part of the lender's broader strategy to diversify its liability mix while supporting asset growth across its core financing verticals. Operating as a base-layer non-banking financial company registered with the Reserve Bank of India, the firm focuses on extending credit to micro, small, and medium enterprises (MSMEs) and corporate borrowers.

Debt Structure and Private Placement Execution

The newly approved debentures are scheduled to be offered on a private placement basis to eligible institutional investors, high-net-worth individuals, and corporate bodies. The 13.15% coupon rate reflects current debt market yields for non-systemically important NBFCs seeking growth capital in a dynamic monetary environment.

According to regulatory filings and corporate governance disclosures, the funds secured through this debt tranche will be deployed directly toward expanding the company's loan portfolio, strengthening asset-liability management, and refinancing existing higher-cost obligations. The issuance terms include structured security cover safeguards designed to protect debenture holders throughout the tenor of the instrument.

According to official exchange disclosures, corporate governance filings, and regulatory updates:

Instrument Type: Rated, secured, redeemable non-convertible debentures (NCDs).
Coupon Rate: 13.15% per annum payable according to structured frequency terms.
Fundraising Mode: Private placement route to qualified institutional and corporate buyers.
Regulatory Compliance: Disclosed pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015.

Official Sources Section

BSE India Corporate Filings: Official regulatory disclosures, board meeting outcomes, and material event notices for Usha Financial Services.
Reserve Bank of India (RBI) Registry: NBFC-ICC base layer licensing details, compliance frameworks, and regulatory oversight guidelines.

Quote Section

"According to regulatory filings submitted to the stock exchanges, the board-approved issuance of secured non-convertible debentures is designed to optimize capital allocation and support targeted credit expansion across domestic retail and MSME segments."

Why It Matters

For institutional investors and debt market participants, high-yield secured NCDs issued by established NBFCs provide fixed-income opportunities backed by concrete asset cover. For Usha Financial Services, securing debt capital at competitive terms ensures steady liquidity inflows necessary to meet rising credit demand among underserved business segments.

Key Facts at a Glance

Issuing Entity: Usha Financial Services Limited.
Security Nature: Secured, redeemable non-convertible debentures.
Yield Benchmark: 13.15% annual coupon structure.
Target Segment: MSME financing and institutional credit expansion.

FAQ Session

What type of security is Usha Financial Services issuing? The company is issuing rated, listed, secured, redeemable non-convertible debentures (NCDs).

What is the coupon rate attached to these NCDs? The debentures carry an annual coupon rate of 13.15%.

Through which channel are these debentures being offered? The debt instruments are being issued on a private placement basis to eligible corporate and institutional investors.

Where can investors verify official disclosures regarding this NCD issuance? Official board resolutions and regulatory compliance filings are accessible via the BSE India Portal.