Ujjivan Financial Services raises Rs 40 crore

Issues secured, redeemable NCDs to Oikocredit; instrument is listed on BSE

Bengaluru-based Ujjivan Financial Services, a microfinance institution, has raised Rs 40 crore of debt capital through issuance of listed, secured, redeemable, non-convertible debentures (NCDs) to Oikocredit.

The NCDs are listed on the Bombay Stock Exchange (BSE) and have been fully subscribed, Ujjivan said in a statement.

Commenting on this second investment by Oikocredit, Samit Ghosh, Managing Director, Ujjivan, said, "We appreciate Oikocredit's continued support and commitment to the social sector and look forward to deepening our relationship."

The transaction reiterates Ujjivan's inherent strength of robust operations, excellent growth and diversified sourcing avenues. On the backdrop of a successful 2013-14, Ujjivan has posted excellent growth and profitability in the first three quarters of the current fiscal year.

Speaking on the transaction, Florian Grohs, Credit Director at Oikocredit said, "Oikocredit supports solid businesses with strong social impact and we have found this ideal combination in Ujjivan."

Ujjivan Financial Services started operations in Bangalore in 2005 and serves over 2 million urban and semi-urban customers in 24 states across India with over 6,500 employees at 423 branches. It has disbursed loans of over Rs 9,800 crore with a repayment rate of over 99 per cent.