Grameen Koota Raises INR 25 Crores through Non-Convertible Debentures
June 20, 2012
Bangalore-headquartered microfinance firm Grameen Financial Services Private Limited (GFSPL), popularly known as Grameen Koota has raised INR 25 Crores (USD 5 million) in debt funding through an issue of secured, redeemable, non-convertible debentures (NCDs).
The NCDs, which are listed on the Bombay Stock Exchange, will be fully financed through funds advised by responsAbility Social Investments AG (responsAbility), one of the world’s leading impact investment companies. This NCD issue follows a similar INR 35 Crores NCD issued by GFSPL last year in the month of February 2011.
"This transaction is another milestone for Grameen Koota and is very critical given the current phase of the industry. This transaction will help improve our liquidity situation and disburse loans to many of our long standing waiting borrowers. This NCD investment from a leading impact investment firm in our company is a demonstration of faith on the performance of company`s commitment to financial inclusion," said Suresh Krishna, Managing Director, Grameen Koota.
“This transaction is very important and stabilizes our liquidity position due to the nature of the transaction. With support of social-oriented investors along with greater support from domestic banks and institutions, we will be able to consolidate as an efficient MFI,” said Udaya Kumar, CEO, Grameen Financial Services Pvt. Ltd.
"We remain optimistic about the microfinance and access-to-finance sectors in India, and are excited about the opportunity to continue to support high-quality institutions such as Grameen Financial in improving access to financial services,” said Anand Chandani, Regional Director, responsAbility.
"We are seeing a strong rebound in funding to the MFI sector from multiple avenues. Grameen Financial is a pioneer in the sector and it is fantastic to have seen their portfolio witness a strong growth over the last one year - these are definitely encouraging signs for the entire sector. We are delighted to continue our association with Grameen Financial and assist them in raising long term debt capital through the NCD route," stated Eric Savage, President & Co-Founder, Unitus Capital, who acted as the sole arranger to the issue.
About Grameen Financial services Private Limited:
Grameen Financial Services Private Limited (GFSPL), a microfinance institutions headquartered in Bangalore, popularly known as Grameen Koota has about 4 Lakh members with 1300 employees working out from 168 branches in Karnataka, Maharashtra and Tamil Nadu. It had loan outstanding of Rs 381.26 crore as of March 2012. Being socially focused Microfinance Institutions; Grameen Koota has over a decade of experience in micro lending towards Joint Liability Groups formed exclusively of women from poor and low income households with other support products like Water, Sanitation, Health Care, Energy Efficient Cook Stove etc. For more information, visit www.gfspl.in
With assets under management of more than USD 1 billion, responsAbility is one of the world’s leading social investment companies. Its areas of focus include microfinance, SME financing, fair trade, and independent media. responsAbility’s investment solutions give people in developing and emerging economies access to markets, information, and other services crucial to their development; they enable private and institutional investors to earn a financial return while at the same time making a positive social impact. Founded in 2003, responsAbility operates as an independent asset manager. The assets managed by responsAbility are currently invested in 381 companies and 76 countries. For more information, visit www.responsAbility.com
About Unitus Capital:
Unitus Capital is a financial services firm specializing in arranging capital for companies benefiting those at the bottom of the economic pyramid in sectors including microfinance, renewable energy, health care and education. With operations in Bangalore, Beijing, London, Singapore and Sydney, Unitus Capital delivers a range of financial advisory and capital market services to clients across Asia. For more information, visit www.unituscapital.com
For more information, contact:
Mr. Suresh Krishna | Managing Director| GFSPL