Grameen Koota Raises INR 25 Crores through Non-Convertible Debentures
Friday, June 22, 2012
Microfinance Focus, June 22, 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.