On November 3, 2025, ESAF Small Finance Bank announced its decision to raise ₹150 crores through the issuance of listed, rated, taxable, unsecured, transferable, redeemable, fully paid-up subordinated bonds in the form of non-convertible debentures (Tier II Bonds). This move follows a previous approval from shareholders during the bank's 9th Annual General Meeting held on September 24, 2025, which authorized a total fundraising limit of ₹1,000 crores. With this issuance, ESAF aims to strengthen its capital base while complying with Basel II requirements.

The bonds will be issued on a private placement basis, comprising 15,000 debentures with a face value of ₹1,00,000 each. The fixed coupon rate for these debentures is set to not exceed 11.30% per annum, with the bonds expected to be listed on the Negotiated Trade Reporting Platform under the New Debt Market of the National Stock Exchange of India Limited. The allotment date for the issuance is anticipated to be November 10, 2025, with a maturity date slated for August 10, 2031.

The ESAF Board also delegated authority to its Management Committee to finalize the terms of the bond issuance, including timing and amounts, ensuring flexibility in future capital-raising efforts. This decision reflects ESAF's commitment to maintaining a robust financial position while providing investors with an attractive investment opportunity in the form of secure and redeemable bonds. The announcement was officially communicated to both the BSE and NSE, marking a significant step in the bank's growth trajectory.