Spandana raises Rs 80 crore

Spandana Sphoorty Financial Limited, a Hyderabad-based microfinance institution, has raised Rs 80 crore by issuing one-year non-convertible debentures (NCD) redeemable at a premium of 10 per cent.

The NCDs have been subscribed by Standard Chartered Bank India and will be listed on the Bombay Stock Exchange (BSE).

Spandana stated in a press release on Tuesday that it also has a greenshoe option of Rs 220 crore, which would be explored at a later date with the investors that include banks, mutual funds, financial institutions, insurance corporations, foreign institutional investors (FIIs), provident and pension funds and corporate investors.

“We have one more funding route open now. This is a great beginning to diversify our funding sources and this would enhance our ability to reach out to low income households in seven new states we are planning to expand to in this year,”Padmaja Reddy, Spandana’s managing director, said. Issuance of NCD has several compliances and it would improve Spandana’s corporate governance, she added.