New-Delhi-based microfinance institution Satin Creditcare Network Ltd has secured Rs 25 crore ($3.7 million) through an issuance of non-convertible, redeemable, cumulative preference shares to Karvy Capital, as per a stock market disclosure.
IFMR Capital executed the private placement of the CARE BBB-rated preference shares at a coupon of 12.10% per year and redeemable after approximately five years.
The company will use the proceeds from the issuance for working capital requirements.
“This will help us improve our capital adequacy,” said H P Singh, chairman and managing director, Satin Creditcare.
In FY2016-17, the company is looking to raise Rs 5,000 crore, including both debt and equity.
The firm has been raising funds through various instruments, such as term loans, sub-debt (tier 2 capital), NCD, preference shares, ECB, commercial paper and securitisation/assignment.
Satin Creditcare, which was formed as a non-banking financial company (NBFC), has evolved into one of the leading microfinance institutions in India.
With operations across 16 states, its loan portfolio is expected to touch Rs 5,000 crore with a net profit of Rs 100 crore in FY2016-17.
It counts ShoreCap II Ltd (managed by Equator Capital), Danish Microfinance Partners K/S, Microvest Mauritius Ltd and Norwegian Microfinance Initiative (NMI) Fund III KS, among others, as investors.
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