Utkarsh Micro Finance raises $12M through NCDs

21 December, 2013

Varanasi-based Utkarsh Micro Finance Pvt Ltd has raised Rs 75.8 crore ($12.09 million) in debt funding through an issue of secured, redeemable, non-convertible debentures (NCDs), the company said in a release.

The NCDs, which are listed on the BSE, were financed by Microfinance Enhancement Facility, UTI International Wealth Creator 4 and AAV Sarl, which were advised by BlueOrchard Finance S.A, responsAbility Investments AG and Symbiotics SA, respectively.

“The three NCD transactions in last three months are an important achievement for Utkarsh. This will help the company diversify its funding channels and instruments. It will also help in further improvement in asset liability maturing pattern,” said Govind Singh, MD & CEO, Utkarsh.

Last week, the firm said that it has raised Rs 29.8 crore through the issue of secured, rated, listed, redeemable, transferable, non-convertible debentures of face value of Rs 1,000,000 each on a private placement basis.

The microfinance institution (MFI) pegs its total capital requirement at Rs 400 crore ($72.8 million) for the next two-three years.

Currently, Utkarsh provides loans to women and the amount varies between Rs 6,000 and Rs 15,000. It currently operates across 29 districts of Uttar Pradesh, Bihar, Madhya Pradesh, Uttarakhand and Delhi; runs 123 branches and has more than 285,000 active clients. It has a loan portfolio of Rs 267 crore.

Over six years, Utkarsh expects to increase its reach five-fold to more than 800,000 women borrowers in rural and semi-urban markets.

In April 2013, the MFI raised $3.6 million from its existing investors Aavishkaar Goodwell, International Finance Corporation (IFC) and Norwegian Microfinance Initiative (NMI) in its third round of equity infusion.

(Edited by Joby Puthuparampil Johnson)


Leave Your Comment
The Great Indian NCD Rush

The Great Indian NCD Rush

Pallavi S 8 years ago
There appears to be rush among Indian companies to raise funds through non-convertible debentures (NCD), a loan to a company that cannot be converted into...
Grameen Koota raises Rs 50Cr via NCDs from Triodos Investment Management

Grameen Koota raises Rs 50Cr via NCDs from Triodos Investment Management

TEAM VCC 4 years ago
Microfinance firm Grameen Financial Services Pvt Ltd, popularly known as Grameen Koota, has raised Rs 50 crore via listed non-convertible debentures (NCDs) from Triodos Fair...
Grameen Koota Raises Rs 35Cr Through NCDs

Grameen Koota Raises Rs 35Cr Through NCDs

TEAM VCC 6 years ago
Bangalore-headquartered microfinance firm Grameen Financial Services Private Limited has raised Rs 35 crore ($8 million) in debt funding through an issue of secured, redeemable, nonconvertible...
No Comments

Utkarsh Micro Finance raises $12M through NCDs

Powered by WordPress.com VIP