Aye Finance Approves Issuance of Up To USD 15 Million in Non-Convertible Debentures

Aye Finance Approves Issuance of Up To USD 15 Million in Non-Convertible Debentures​

Aye Finance Ltd, formerly AYE FINANCE PRIVATE LIMITED, has confirmed that its Working Committee of Asset and Liabilities Committee (WALCO) approved the offer and issuance of senior, secured, rated, listed, redeemable, transferable, non-convertible debentures. The transaction is set to be executed on a private placement basis, targeting an aggregate nominal value of up to INR equivalent of USD 15 million.

The debentures are structured with a face value of INR 1,00,000 each. WALCO reviewed and approved the offer during its meeting held on June 8, 2026.

Debenture Structure and Timeline​

The issued instruments are intended for listing on the Wholesale Debt Market Segment of BSE Limited. The debentures have a tenure of five years from the Deemed Date of Allotment.

Key financial details regarding the issuance include:

• Securities: Senior, secured, rated, listed, redeemable, transferable, non-convertible debentures.
• Issuance Method: Private placement basis.
• Size: Up to the INR equivalent of USD 15 million.
• Tenure: 5 years from the Deemed Date of Allotment.
• Proposed Allotment Date: June 25, 2026.
• Proposed Maturity Date: June 25, 2031.

Security and Repayment Details​

The transaction documents specify that a first ranking exclusive charge will be created over identified assets and all present and future specified receivables to serve as security for the discharge of secured obligations. The value of these Hypothecated Assets must always be at least 1.1 times the value of the outstanding amounts regarding the debentures, commencing from the Deemed Date of Allotment.

Regarding repayment structure:

• Interest Payment: The interest on the debentures is to be paid semi-annually on the last day of each coupon period. The coupon/interest rate will be determined in accordance with the Transaction Documents based on any hedging agreements entered into by investors.
• Principal Redemption: The principal amount shall be redeemed in five equal installments, commencing from 1.5 years after the date of allotment, as defined in the debenture trust deed.

In the event of a delay in payment of interest or principal exceeding three months from the due date, or if any event of default attributable to the Company occurs, Aye Finance shall pay a default interest rate of 2% per annum over the Coupon Rate computed on the entire unpaid amounts until the occurrence is cured.

AYE Stock Price Movement​

Shares of Aye Finance Limited slipped by 4.67% in post-market trading, concluding the day at ₹139.89. The stock traded within an intraday range spanning from ₹138.6 to ₹148 and saw a total volume of 833,574 shares.