RGVN (North East) Microfinance raises Rs 49.26 cr via NCDs

RGVN (North East) Microfinance Ltd today said it has raised Rs 49.26 crore from two foreign investors by issuing Non-Convertible Debentures.
"RGVN NE MFL has announced successful closure of two Non-Convertible Debenture deals this month, amounting to Rs 49.26 crore, invested by Microfinance Initiative for Asia (MIFA) and AAV Sarl," the company said in a statement.
MIFA is managed by Blue Orchard Finance, based out of the Netherlands, while Luxembourg-based AAV Sarl is managed by Symbiotics from Singapore.
"Both the NCDs are listed on BSE with a rating of BBB+ awarded by CARE Ratings," the company said.
Commenting on the deal, RGVN NE MFL Managing Director Rupali Kalita said: "This fund will help RGVN NE MFL to expand its business in Northeastern states.

This long-term funding will enable us in business expansion to serve additional poor household in the region and venture into unchartered territories.

"RGVN (North East) Microfinance, an NBFC-MFI registered with Reserve Bank of India, is planning to enter Tripura within this year. With its mandate to serve poor households of North-East, the company is operational in five states in the region with 120 branches and Rs 230 crore of loan book.
"We are well capitalized with the investment from our equity investors last year. With these NCDs and other debt funding, we will disburse close to Rs 500 crore this year," RGVN NE MFL Vice President Prem Kiran Varikuti said.

The company is also adding "fee-based revenue" to improve profitability, he added.
RGVN NE MFL clocked a profit after tax of Rs 7.3 crore in 2014-15. The company is one of the aspirants of small finance bank license and had submitted its application to RBI earlier this year, the statement said.
RGVN NE MFL has so far raised money from various institutional investors, including SIDBI, NEDFi, RGVN Society, Dia Vikas Capital, Norwegian Microfinance Initiative and Oiko Credit.
The company had raised Rs 42 crore equity investment in July, 2014 from NMI, Oiko Credit and Dia Vikas.