Navi Finserv will utilise the funds raised through the bond issue for lending, financing, loan repayment, and general corporate purposes.
Navi Finserve, a unicorn founded by Sachin Bansal and Ankit Agarwal, is set to raise Rs 600 crore through the issuance of Non-Convertible Debentures (NCDs) to fund its plans to expand the business.
RBI-registered Navi Finserv Limited is a Non-Deposit Taking NBFC (ND-SI) that lends through the Navi App.
The total issue size includes a green shoe option of up to Rs 300 crore to retain oversubscription.
The secured, rated, listed NCDs will have tenors of 18, 27, and 36 months and offer effective yields between 10.47-11.19 per cent per annum, the company said in a statement.
The issue would open for subscription from February 26 onwards, it said.
Reacting to the development co-founder, Sachin Bansal said, “After successfully concluding and raising over Rs 950 crore cumulatively in our last two issuances, we are pleased to announce the launch of Navi Finserv’s third public debt issue that goes live on February 26, 2024. The funds raised through this will be used for onward lending, financing, loan repayment, and other general corporate purposes.”
“Our long-term focus is on utilising technology and data science capabilities to enhance our customer experience, offering them an integrated ecosystem of financial services, while we also continue to increase reach across India and foray into new product lines,” he added.
The funds raised through the bond issue will be used for onward lending, financing, loan repayment, and general corporate purposes, the company further added.
This is the third capital raise through NCDs in the last two years. The company has already concluded its first and second raise of Rs 495 crore in FY 2023 and Rs 481 crore in FY 2024.