Bangalore-headquartered, Ujjivan Financial Services, a leading microfinance institution with pan-India presence, has raised INR 40 Crores of debt capital through issuance of listed, secured, redeemabl
Bangalore-headquartered, Ujjivan Financial Services, a leading microfinance institution with pan-India presence, has raised INR 40 Crores of debt capital through issuance of listed, secured, redeemable, non-convertible debentures (NCDs) to DMW (Cyprus) Limited , a member of the Developing World Markets (DWM) group of companies. Unitus Capital is the exclusive financial advisor and sole arranger of the issue. The NCDs are listed on the Bombay Stock Exchange and have been fully subscribed to by Connecticut-headquartered DWM is an asset manager and investment bank exclusively dedicated to making socially positive investments in order to promote sustainable economic and social development on a global scale.
The transaction confirms the inherent strength of Ujjivan’s operations and highlights the leadership role played by DWM and Unitus Capital in global microfinance. Commenting on the landmark deal, Samit Ghosh, Managing Director, Ujjivan, said,” We expect the banks & financial institutions in India to resume lending to MFIs outside Andhra Pradesh post the Reserve Bank of India’s directions of December 22nd, 2010. We are proud to be the recipient of the first international transaction after that date, where DWM has showed the way.”
“Given the current status of the sector, banks are wary of lending to MFIs. As such, it has become even more critical for MFIs to diversify their funding sources. The transaction has helped Ujjivan raise bulk funding at competitive rates and reaffirm the positive investor sentiments towards the Company and the sector in general. Unitus Capital takes pride in having structured and facilitated this transaction with a pioneering MFI and a leading microfinance investor,” stated Gautam Verma, Director, Unitus Capital.