Microfinance lender CreditAccess Grameen Ltd on Thursday said it has successfully raised ₹300 crore through a private placement of non-convertible debentures . The issue was fully subscribed and bilaterally placed with Barclays Bank PLC, a qualified institutional buyer.
The company said it continues to use the private placement NCD route to fund the growth of its lifecycle credit suite for low-middle income households across rural and semi-urban India. The NCDs are senior, secured, rated, listed and redeemable in nature.
The issue was raised in two tranches. The first tranche comprises ₹100 crore with a tenure of 24 months and carries a fixed coupon of 9.15% per annum. The coupon on both tranches is payable annually, while the principal will be repaid through a bullet payment at the end of the respective tenures.
Nilesh Dalvi, Chief Financial Officer, CreditAccess Grameen, said, "The bilateral NCD placement with a leading global financial institution is a strong endorsement of our credit profile, asset quality and governance standards, while further deepening our access to the domestic institutional debt market.
From an ALM perspective, the bullet structure is particularly advantageous, as the principal remains fully outstanding until maturity rather than amortising progressively, thereby providing a longer effective funding benefit and strengthening our ALM profile.