Ujjivan raises Rs 23 cr through non-convertible debentures

Ujjivan Financial Services Private Limited, a leading urban poor-focused microfinance institution (MFI), has raised Rs 23 Crores ($5 Million) by way of private placement of Non-Convertible Debentures (NCD). Standard Chartered Bank is the sole book runner and lead arranger of the issue.

Mr Samit Ghosh, Managing Director, Ujjivan said, “This reiterates the faith of banks and financial Investors in Ujjivan. During FY 11, Ujjivan has shown consistent performance and growth amidst crisis.” Mrs Sudha Suresh, Chief Financial Officer indicated that the funding was successfully completed in record time.

The NCD is listed with Bombay Stock Exchange.

Mr Joseph Silvanus, Regional Head-Development Organizations for South & South East Asia, Standard Chartered Bank, said, “This is a landmark transaction which comes at a crucial juncture and reaffirms the faith of lenders & investors in the sector. We are happy to have been able to facilitate this transaction and would continue to engage with the sector as an enabler to help achieve the larger goals of financial inclusion.”

Ujjivan Financial Services serves over a million clients and recorded a profit growth of 49% while its loan portfolio was up by 69% over last year, to Rs 6250 Million. The PBT stands at Rs 177.20 million with a post-tax profit of Rs 114.10 million for FY11.Recently Ujjivan was ranked No 1 in the Microfinance Industry as the Best Company to Work for in India 2011 by Great Place to Work Institute, US, and Economic Times.