MFI Ujjivan raises Rs 290 million through NCDs

Ujjivan Financial Services, a leading urban poor-focused microfinance institution (MFI), has raised Rs 290 Million (USD 5.8 Million) by way of private placement of Non-Convertible Debentures (NCD). The NCD is listed with Bombay Stock Exchange.

Samit Ghosh, Managing Director, Ujjivan said, “This transaction, once more reiterates the confidence of banks and financial investors in our mission, business model and our portfolio quality. We continue to show consistent performance through a difficult period for the industry.” Mrs. Sudha Suresh, Chief Financial Officer indicated that the funding was successfully completed in record time.

Jim Kaddaras, Partner, Developing World Markets, said: “We are delighted to be completing the second purchase by DWM-managed funds of listed NCDs issued by Ujjivan. DWM remains committed to supporting the financial and social goals of leading Indian microfinance institutions and to financing their growth. It is a pleasure for us to be associated once again with such an outstanding organization as Ujjivan.”

With this transaction, Ujjivan’s funding through non-convertible debentures rises to over Rs.840 million in 2011-12.

Ujjivan Financial Services serves over a million clients in 20 states including 49 under-banked districts. Recently Ujjivan received the Microfinance Organisation of the Year award and ranked first in the Microfinance Industry as the Best Company to Work for in India.