Largest tier II NCD in Indian Microfinance history issued

 IFMR Capital, a Chennai-based Non-banking financial company (NBFC), has successfully executed the issuance of long term tier II NCD for Satin Creditcare Network Limited (SCNL).


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INR 21 Crore was raised in the form of privately placed, unsecured, subordinated, rated, NCDs issued by Satin Creditcare for tenure of a little over 5 years. The NCDs were fully subscribed to by the Investment Fund for Developing Countries (IFU), a Danish Government owned investment fund.

This NCD issuance is expected to help Satin Creditcare significantly scale up its operations and expand its outreach to many more financially excluded households. Satin Creditcare has received a rating of [CARE] BBB for its Tier II NCD issuance, one notch lower than its senior secured debt which was also rated by CARE. This is the first time that IFMR Capital has facilitated a tier II NCD issuance deal.

Speaking on the Tier II NCD issuance, Dr. Kshama Fernandes, CEO, IFMR Capital said, “This transaction is a significant milestone in the Indian microfinance space and reflects the long term confidence of the investors in Satin Creditcare. The successful completion of the Tier II placement will open the market for long term subordinated debt products for the sectors that we work in. We hope to enable many more of such Tier II issuances going forward.”

Speaking on the first Tier II NCD raise, Mr. H P Singh, Chairman, Satin Creditcare Network Limited said, “The NCD issuance will provide a generous boost to SCNL’s growth enabling SCNL to provide financial access to a wider base of underserved individuals and enterprises. We are glad to have worked with IFMR Capital on successfully completing our first Tier II issuance.”

Sating Creditcare Network Limited has been one of IFMR Capital’s earliest microfinance Originators and has contributed to a large number of multi originator securitisation (MOSECTM) transactions, NCDs and CBOs structured by IFMR Capital giving it access to more than Rs 1000 crores of funding from capital markets over the last few years.

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