Ujjivan raises Rs 100 cr through NCD issue

Bengaluru-headquartered Ujjivan Financial Services, a microfinance institution with pan-India presence, has raised Rs 100 crore from domestic mutual fund through the issuance of listed, secured, redeemable, non-convertible debentures (NCDs). HSBC was the sole arranger to the issue.

The NCDs will be listed on the Bombay Stock Exchange.

Samit Ghosh, Founder and Managing Director, Ujjivan said, “Ujjivan has pioneered raising debt from the vast pool of domestic mutual funds. This transaction is continuation in the journey to diversify our source of funding and indicative of excellent investor confidence in Ujjivan.”

Speaking on the transaction Sudha Suresh, CFO, Ujjivan, said that “this NCD issuance signifies the confidence Ujjivan enjoys across diversified set of investors”. This  NCD transaction has been rated ‘A’ by CARE’.

Speaking on the NCD issuance, Tarun Balram, Managing Director and Head of Capital Financing, HSBC India said, “Such transactions present an excellent diversification opportunity for both investors and the microfinance sector. Growing access to capital markets is also a testimony to the credit strength of Ujjivan and recognition of the same amongst the investors.”

Ujjivan Financial Services, a microfinance institution (MFI), started operations in Bengaluru in 2005 and serves over 2.3 million urban, semi-urban and rural poor women in 24 states across India with over 7,000 employees and 439 branches. It has disbursed loans of over Rs 11,100 crore with a repayment rate over 99 per cent.

Ujjivan runs a robust financial literacy programme and community development & disaster relief programs for customers in collaboration with Parinaam Foundation which is a non-profit organisation.