Janalakshmi Fin Services raises around Rs 180 crore

Microfinance institution Janalakshmi Financial Services today said it has raised around Rs 180 crore through issuance of non-convertible debentures and from unsecured term loans.
It has raised Rs 150 crore through private placement of non convertible debentures to a single mutual fund house.
The issuance consists of three different strips of Rs 50 crore each with tenures varying between 2, 3 and 4 years.
The company, however, did not disclose the coupon of these three bonds.
The Bangalore-based micro financier also raised Rs 27 crore through a three-year unsecured term loan from IFMR Capital.
"As an institution, we are very keen to diversify our source of funds. This also creates confidence among investors about the MFI sector," its chief operating officer V S Radhakrishnan said.

He said the funds will be used for expansion of its business.
Besides bank borrowing, MFI's are looking for alternate channel, which are cheaper than banks, to meet their fund requirements.
Recently, Ujjivan Financial Services had raised Rs 50 crores from a domestic mutual fund through issuance of commercial paper.