New Delhi, May 27 -- Two non-bank financiers lending to small businesses have separately approached their bondholders, seeking relaxations on covenants that were part of their original agreements to raise funds.

Ugro Capital and Aye Finance raised bonds worth Rs.49.28 crore and Rs.50 crore, in 2022 and 2024, respectively. The lenders have now requested bondholders to waive certain covenants, and the respective bond trustees have conveyed them to the investors. In finance, covenants are part of agreements that prescribe certain dos and don'ts for issuers of these debt securities. A breach allows bondholders to seek additional interest, among other things.

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