Udaipur-based Sahayata Microfinance has raised INR 195 Mn through the issuance of listed, secured, redeemable, non-convertible debentures (NCDs), which have now been purchased by DWM (Cyprus) Ltd., a member of the Developing World Markets group of companies. IFMR Capital is the sole financial advisor to the issue. The NCDs are listed on the Bombay Stock Exchange and have been fully subscribed.
This transaction is significant not only because it is the first time that Sahayata has raised funds through listed bonds, but also because this transaction allows the company access to newer funding sources, which will be a robust support system for the low-income households that Sahayata serves across India. With this transaction, Sahayata has demonstrated its ability to attract diversified sources of financing. This transaction also reaffirms the commitment of DWM and IFMR Capital to the microfinance sector.
Commenting on the milestone deal, Ajay Verma, Managing Director & CEO, Sahayata, said “This is Sahayata’s first listed transaction and will boost confidence amongst investors and funders. The NCD transaction has opened up new avenues for funding to the company. Thanks to the DWM and IFMR Capital team for making this possible”.
Congratulating Sahayata and IFMR Capital, Jim Kaddaras, Partner for Debt, Structuring and Legal Affairs at DWM, said, “We are delighted to have brought financing to Sahayata, in order to support thousands of low-income entrepreneurs across India. At a time of uncertainty in the Indian microfinance sector, DWM is committed to financing socially committed MFIs with strong management teams like Sahayata. We hope to provide further financing to the sector in FY2012.”
Vineet Sukumar, Head Origination and Treasury at IFMR Capital said, “This transaction is yet another milestone in IFMR Capital’s efforts to provide high quality originators access to debt capital markets. We are delighted that Sahayata Microfinance, a long standing partner and a participant in all multi-originator securitisations structured by IFMR Capital, has availed of funding from rated, listed instruments that enhance transparency for the company and the sector, and pave the way for alternative and sustainable funding sources”.