Samunnati Bonds Explained: Price, ISIN, Yield (YTM), Rating & Key Risks

Introduction

Corporate bonds issued by non-banking financial companies form an important segment of India’s debt market. Among these, bonds issued by specialised NBFCs focused on niche sectors often draw attention due to their differentiated lending models and exposure profiles.

Samunnati bonds represent debt instruments issued by Samunnati Financial Intermediation and Services Private Limited, an NBFC operating in the agricultural value chain. This article provides an educational explanation of Samunnati bonds, covering their structure, pricing framework, credit rating, yield concept, and key risks, without offering any investment recommendation or opinion.

Overview of Samunnati Bonds

Samunnati bonds are non-convertible debentures (NCDs) issued through private placement and listed on stock exchanges. These instruments are typically structured as secured, senior obligations, meaning they rank higher in the repayment hierarchy compared to subordinated debt, subject to the terms outlined in the offer document and security structure.

The bonds are issued with defined maturity dates, fixed coupon structures, and periodic interest payouts, forming part of the issuer’s broader borrowing programme.

Bond Structure and Instrument Details

Key structural features of the Samunnati bond under discussion include:

• Issuer: Samunnati Financial Intermediation and Services Private Limited

• ISIN: INE0N5S07052

• Nature: Listed, secured

• Seniority: Senior

• Mode of Issue: Private placement

• Face Value: ₹1,00,000 per unit

• Date of Issue: 23 September 2025

• Maturity Date: 23 March 2027

• Debenture Trustee: Catalyst Trusteeship Limited

These details define the contractual framework governing cash flows, maturity, and investor rights.

Understanding Bond Price, Face Value and ISIN

The face value of a bond represents the principal amount on which interest is calculated and which is scheduled to be repaid at maturity, subject to amortisation terms if applicable.

The bond price, when traded in the secondary market, may differ from the face value depending on factors such as interest rate movements, remaining tenure, credit perception, and market liquidity.

The ISIN (International Securities Identification Number) uniquely identifies the bond and enables tracking across depositories, exchanges, and reporting systems. For Samunnati bonds, the ISIN ensures transparency and standardisation in market references.

Coupon Structure and Yield to Maturity (YTM)

The Samunnati bond carries a fixed coupon rate of 11.00 percent, with monthly interest payouts. The coupon determines the periodic interest cash flow based on the face value.

Yield to Maturity (YTM) represents the internal rate of return implied by the bond’s price, coupon payments, and remaining tenure, assuming the bond is held until maturity and all payments are made as scheduled.

It is important to note that YTM is a calculated metric and not a guaranteed outcome. Actual realised returns depend on multiple variables, including holding period, reinvestment assumptions, and market price movements.

Credit Rating and What It Indicates

The bond has been assigned a BBB rating by India Ratings and Research Private Limited, with the rating dated 24 March 2025.

A BBB rating generally indicates moderate credit risk, reflecting the agency’s assessment of the issuer’s ability to meet its financial obligations under current conditions. Credit ratings are opinions, not assurances, and are subject to revision based on changes in the issuer’s financial profile, operating environment, or broader economic conditions.

About the Issuer: Samunnati Financial Intermediation and Services

Samunnati was incorporated in November 2014 and is registered as a non-deposit accepting NBFC. The company focuses on providing financial services to the agricultural value chain, including farmer producer organisations, agri-enterprises, and ecosystem participants.

Over time, Samunnati transitioned away from direct retail lending and adopted a B2B2C model, primarily engaging with institutional and enterprise-level counterparties rather than individual retail borrowers. The company has also scaled back certain segments, such as FPO-AC disbursements, aligning its business model with evolving risk and operational considerations.

Key Management and Business Model

Samunnati’s leadership team includes:

Mr. Anil Kumar S G – Founder and CEO

Mr. Lalit Malik – Group CFO

Mr. Anuj Narang – Group Business Head

Mr. Phani Kumar Thota – Chief Operating Officer

The management team’s experience in agricultural finance and structured lending plays a role in shaping the company’s underwriting approach, portfolio composition, and risk management practices.

Regulatory and Issuance Framework

Samunnati bonds are issued in compliance with applicable regulations governing NBFC debt issuance in India. This includes disclosure requirements, credit rating norms, trustee oversight, and listing obligations.

The debenture trustee is responsible for monitoring covenant compliance, security creation, and issuer obligations as outlined in the trust deed and offer documents. Regulatory frameworks aim to enhance transparency but do not eliminate credit or market risks.

Key Risks and Limitations

Like all corporate bonds, Samunnati bonds carry inherent risks, including:

• Credit risk: Dependence on the issuer’s ability to service debt obligations

• Sector concentration risk: Exposure to agricultural value chains, which may be sensitive to climatic, policy, and commodity price factors

• Liquidity risk: Potential constraints in secondary market trading

• Interest rate risk: Sensitivity of bond prices to changes in market interest rates

• Rating migration risk: Possibility of credit rating changes over time

These risks should be evaluated collectively rather than in isolation.

Common Misconceptions About Samunnati Bonds

Some commonly observed misconceptions include:

• Secured bonds are free from default risk

• Credit ratings ensure timely repayment

• Fixed coupons imply predictable outcomes

• Listed bonds are always liquid

Understanding these misconceptions helps clarify the limits of structural and rating-based assessments.

Conclusion

Samunnati bonds represent structured debt instruments issued by an NBFC focused on agricultural value-chain financing. Their characteristics, including fixed coupons, defined maturity, credit rating, and secured status, form the basis for evaluation rather than labels or comparisons.

A clear understanding of bond structure, issuer background, credit assessment, and associated risks is essential when interpreting such instruments within the broader corporate bond market.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner, as a SEBI-registered Online Bond Platform Provider (OBPP), does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.