Aditya Birla Finance Limited (ABFL)  First NCD Public Issue opens on Wednesday, September 27, 2023, and closes on Thursday, October 12, 2023

Key Highlights:

• Issuance of secured, rated, listed, redeemable, non-convertible debentures of face value of ₹ 1,000 each (“NCDs”) aggregating up to ₹ 2,000 crore (“Issue”).
• Issue opens on Wednesday, September 27, 2023, and closes on Thursday, October 12, 2023, with an option of early closure.
• NCDs are rated IND AAA Outlook Stable by India Ratings & Research Private Limited and [ICRA]AAA (Stable) by ICRA Limited.
• NCDs with tenor options of 3 years, 5 years or 10 years offered with ‘monthly’, ‘annual’ or ‘cumulative’ interest payment frequency.
• Coupon rates range from 8.00% p.a. to 8.10% p.a. for annual options with effective yields ranging from 7.99% p.a. to 8.09% p.a. across various series.
• Allotment on first-come-first-serve basis. 
• Minimum application size of ₹ 10,000 (10 NCDs) across all series collectively and in multiples of ₹ 1,000 thereafter.

MUMBAI, SEPTEMBER 25, 2023 (GPN): Aditya Birla Finance Limited (“ABFL” or “Company”), a subsidiary of Aditya Birla Capital Limited, has announced its first public issue of NCDs for an amount up to Rs. 1,000 crores with an option to retain oversubscription up to Rs. 1,000 crores, aggregating up to 2,00,00,000 NCDs for an aggregate amount of up to Rs. 2,000 crores, pursuant to a prospectus dated September 21, 2023 (“Prospectus”) filed by the Company with the RoC and the Stock Exchanges. 

The NCDs proposed to be issued pursuant to this Issue have been rated IND AAA Outlook Stable and rated [ICRA] AAA (Stable) by India Ratings & Research Private Limited and by ICRA Limited, respectively. The ratings are valid and will continue to be valid for the life of the instrument unless withdrawn or reviewed. Instruments with this rating are considered to have a highest degree of safety regarding timely servicing of financial obligations and carry the lowest credit risk.

Trust Investment Advisors Private Limited, A.K. Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the lead managers to the Issue.

Issue Structure

The terms of each series of the NCDs, offered under the Issue are set out below:

Series	I	II	III*	IV	V	VI
Frequency of Interest Payment	Annual	Cumulative	Annual	Cumulative	Monthly	Annual
Minimum Application	Rs. 10,000 (10 NCDs) across all series
In multiples of thereafter	Rs. 1,000 (1 NCD)
Face Value/ Issue Price of NCDs (₹/ NCD)	Rs. 1,000
Tenor	3 years	3 years	5 years	5 years	10 years	10 years
Coupon (% per annum) for NCD Holders in all Categories	8.00%	NA	8.05%	NA	7.80%	8.10%
Effective Yield (% per annum) for NCD Holders in all Categories	7.99%	7.99%	8.04%	8.04%	8.08%	8.09%
Mode of Interest Payment	Through various modes available
Amount (₹ / NCD) on Maturity for NCD Holders in all Categories	Rs. 1,000	Rs. 1,259.46	Rs. 1,000	Rs. 1,472.73	Rs. 1,000	Rs. 1,000
Maturity / Redemption Date (from the Deemed Date of Allotment)	3 years	3 years	5 years	5 years	10 years	10 years
Put and Call Option	Not Applicable

*Our Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

The Issue will open on Wednesday, September 27, 2023, and close on Thursday, October 12, 2023, with an option of early closure of the Issue on such date, as may be decided by the Board of Directors of the Company or a duly authorized committee thereof, subject to compliance with applicable laws. Allotment of NCDs shall be made, in consultation with the Designated Stock Exchange, on a date priority basis, i.e., a first-come, first-serve basis, based on the date of upload of each application into the Electronic Book with Stock Exchanges, in each Portion subject to the Allocation Ratio specified in the prospectus. However, from the date of oversubscription and thereafter, the allotment will be on proportionate basis as detailed in the Prospectus.

The Company proposes to utilise at least 75% of the net proceeds of the Issue towards onward lending, financing and repayment of interest and principal of existing borrowings of the Company and a maximum of up to 25% of the net proceeds towards general corporate purposes.

All the capitalized terms herein but not specifically defined shall have the same meaning as ascribed to such term in the Prospectus.

About Aditya Birla Finance Limited

ABFL is registered with the RBI as a non-deposit taking systemically important non-banking financial company. ABFL have been categorized as an ‘Upper Layer’ NBFC under the scale based regulatory framework for NBFCs introduced by the RBI, with effect from September 30, 2022. ABFL offers end-to-end lending, financing and wealth services to retail, HNI, ultra HNI, micro, small and medium enterprises, small and medium enterprises and corporate customers and offers customized solutions in areas of personal and business loans, corporate finance, mortgages, personal loans, business loans, check-out financing, loan against property, term loans, working capital loans, loans against securities, project loans and wealth services. As of June 30, 2023, we had total loans outstanding of ₹ 85,778.5 crore and a total asset under management of ₹ 85,891.2 crore. ABFL’s long-term credit rating of AAA (Stable) has been reaffirmed by ICRA in February 2023. ABFL also has a long-term credit rating of AAA (Stable) by India Ratings, perpetual debt credit rating of AA+ (Stable) by ICRA and AA+ (Stable) by India Ratings (Stable), short-term credit rating of A1+ by ICRA and commercial paper credit rating of A1+ India Ratings.

About Aditya Birla Capital Limited

Aditya Birla Capital Limited (“ABCL”), our holding company and the promoter, holds 100% of our total issued and paid-up Equity Share capital, as on the date hereof. ABCL has 1,295 branches across its businesses as at March 31, 2023, out of which, 584 are co-located branches across 155 locations (“One ABC Locations”). The One ABC Locations have branches of two or more subsidiaries located at the same location and provide personalized assistance to our customers, helping them achieve their financial goals and helping us leverage potential cross-selling opportunities across the product suite. ABCL is a diversified financial services group and operates in a number of businesses that include non-banking finance, housing finance, life insurance, standalone health insurance, asset management, stock and securities. 

Aditya Birla Capital Limited is a part of the global conglomerate Aditya Birla Group, having businesses present across a wide range of sectors – metals, pulp and fibre, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail and renewable energy.Ends

NUTSHELL –

ABFL NCD Public Issue

Issue opens: Wednesday, September 27, 2023

Issue Closes: Thursday, October 12, 2023

Type of Instrument : Secured, Rated, Listed Redeemable NCD

Issue Size : Rs. 2,000 Crs (Base Size – Rs. 1,000 Crs with an option to retain up to Rs. 1,000 Crs)

Coupon (% per annum) for NCD Holders of *All Categories*
3 Years (Annual): 8.00% p.a.
3 Years (Cumulative): 7.99 % p.a. (Effective Yield)
5 Years (Annual): 8.05 % p.a.
5 Years (Cumulative): 8.04% p.a. (Effective Yield)
10 Years (Monthly): 7.80% p.a.
10 Years (Annual): 8.10% p.a.

Rating : [ICRA] AAA (Stable) & IND AAA Outlook Stable

Allotment First Come First Serve Basis.