Paisalo Digital Declares 1st Foreign Currency Convertible Bonds Of USD $50 Million

Paisalo Digital Limited (PDL) on Friday effectively raised the first tranche of USD $50 million in the issue of Secured Foreign Currency Convertible Bonds (FCCB).

The company has kept the option to issue up to $25 million worth of further FCCBs on the same terms in the next 60 days. In order to convert Foreign Currency Convertible Bonds (FCCBs) for a total of no more than Rs. 1800 crores, the company proposed issuing and allocating equity shares of Re. 1 apiece.

At its meeting on December 6, 2024, the FCCB committee of the company's Board of Directors announced the issue price for FCCBs: 100% of the FCCBs' principal amount, an initial conversion price of Rs. 45.33 per convertible bond, and a U.S.$50 million allocation, or 7.5%. Secured Foreign Currency Convertible Bonds Due 2029, convertible into fully paid-up equity shares of the company with a face value of Rs. 1 each, issued to subscribers for Rs. 45.33 each.

Mr Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, stated, "The issuance of our first FCCB marks a pivotal step in bolstering our borrowing profile and accelerating growth. We are committed to driving innovation and transforming the financial services landscape, strongly focusing on empowering under-banked India and fostering inclusive growth."

International fixed-income funds and well-known international credit funds participated well in Paisalo Digital Limited's (PDL) first FCCB offering. Secured Foreign Currency Convertible Bonds with a 5-year maturity (due in 2029) and a set coupon rate of 7.5% have been issued by the corporation.

"This strategic move underscores Paisalo's commitment to accelerating growth and maintaining financial resilience in an evolving market landscape. The funds raised through the FCCB issuance will fuel the enhancement of Paisalo's vision of empowering India's vast under-banked population through accessible and inclusive financial solutions," said Paisalo Digital in a stock exchange filing.

Paisalo Digital Limited is a non-deposit-taking NBFC registered with the Reserve Bank of India. An established NBFC that is listed and has a strong distribution network in India's rural and semi-urban areas. utilising 3275 contact points across 22 states to provide services to more than 65 lakh individuals.

On Friday, the shares of Paisalo Digital ended on the NSE 0.57% down at Rs 61.48 per share with a market cap of Rs 5.52KCr.