Trilegal: Advises Paisalo on Inaugural ₹300 Crore NCD Issuance

• Paisalo Digital Limited successfully completed a public issuance of non-convertible debentures, raising ₹300 crore.
• This issuance is part of a larger ₹900 crore shelf limit and marks Paisalo's first public debt offering.
• Trilegal provided legal counsel to both Paisalo Digital Limited and the lead manager, Tipsons Consultancy Services Limited.
• The funds raised are designated for Paisalo's onward lending activities, primarily targeting rural India, women, and SMEs.
• The transaction involved multi-disciplinary teams from Trilegal, including Capital Markets and Banking & Finance experts.

The successful execution of this Paisalo Digital Limited NCD issuance by Trilegal offers a valuable precedent for legal professionals advising non-banking financial companies on substantial public debt offerings in India.

Paisalo Digital Limited, a non-deposit taking non-banking financial company classified as a middle layer entity, recently completed a significant public issuance of non-convertible debentures (NCDs). This issuance successfully raised ₹300 crore, forming part of a larger shelf limit set at ₹900 crore. The funds secured through this Trilegal Paisalo ₹300 crore NCD issuance are earmarked for the company's onward lending activities, supporting its core mission of providing diversified financial services.

Legal guidance for this pivotal transaction was provided by Trilegal, which advised both Paisalo Digital Limited and the lead manager, Tipsons Consultancy Services Limited. This dual representation underscores the complex legal requirements inherent in such capital market endeavors. The successful completion marks Paisalo's inaugural foray into public debt markets, signifying a strategic expansion of its funding avenues.

The Trilegal team involved in this Trilegal capital markets deal was extensive and multi-disciplinary. The Capital Markets team included Partner Richa Choudhary, Counsel Avanti Kale, Aayush Khandelwal, and Associates Dinank Bhanot, Shreyansh Gupta, and Sakshi Nalawade. Further expertise was contributed by the Banking and Finance Team, comprising Partner Joseph Jimmy, Counsel Jinay Padh, and Associate Yajat Bansal, highlighting the integrated legal approach necessary for such a complex Paisalo Digital Limited NCD offering.

Paisalo Digital Limited operates with a distinct focus on serving rural India, with a particular emphasis on empowering women customers and supporting small and medium-sized businesses. As a non-deposit taking NBFC, its ability to raise capital through instruments like non-convertible debentures India is crucial for sustaining and expanding its lending operations. This public issuance represents a significant milestone for the company, as it is their first-ever public debt offering, diversifying their funding sources beyond traditional channels.

The decision to issue NCDs under a shelf limit of ₹900 crore provides Paisalo with flexibility for future capital raises, demonstrating a long-term strategic approach to financial management. The immediate ₹300 crore tranche will directly fuel the company's onward lending initiatives, reinforcing its commitment to its target demographic. This NBFC debt issuance India exemplifies how non-banking financial companies leverage public markets to secure capital for their specialized lending models.

The successful execution of this Paisalo Digital Limited NCD issuance by Trilegal offers a valuable precedent for legal professionals advising non-banking financial companies on substantial public debt offerings in India. The involvement of both Capital Markets and Banking & Finance teams from Trilegal highlights the multi-faceted legal expertise required to navigate the intricacies of such transactions, from regulatory compliance and prospectus drafting to security creation and inter-creditor arrangements.

This transaction underscores the critical role of comprehensive legal counsel in structuring and implementing complex financial instruments like NCDs, particularly for entities like Paisalo that are engaged in onward lending. The collaboration between Paisalo Digital Limited and Tipsons Consultancy Services NCD lead manager, facilitated by Trilegal's advice, showcases a robust framework for similar future issuances. It provides a practical blueprint for how NBFCs can tap into public markets effectively to support their growth and fulfill their financial inclusion objectives.

This transaction provides a practical precedent for legal counsel advising non-banking financial companies (NBFCs) on structuring and executing significant public non-convertible debenture issuances in India, particularly for onward lending initiatives. It showcases the multi-disciplinary legal expertise (Capital Markets, Banking & Finance) required for such complex deals.

Source: Original reporting via Bar & Bench