Janalakshmi Financial Services Private Limited has raised Rs 125 crore through a non-convertible bond issue. Bonds were rated A- by ICRA and placed on a private placement basis with domestic institutional investors.
Janalakshmi intends to use the proceeds to fund its business expansion. It plans to reach out to the urban poor, the company said in a statement.
This is one of the largest syndicated local currency bond issues by a micro-finance institution in India targeting non-bank investors. It is part of a larger exercise to broad base investors, the company said.
This is the first tranche for raising a total of Rs 250 crore. The issuances are being structured in various tranches from 18 months to three-year tenors over coming months to be widely distributed to a number of long-term institutional investors. Deutsche Bank is acting as the sole arranger and book runner for the offering.
Janalakshmi also closed an NCD from the FMO, the Netherlands Development Finance Company for Rs 200 crore last month. Janalakshmi has entered into an agreement to borrow $10 million from a US-based company before March 2015, fulfilling all the regulatory requirements of the RBI.
V S Radhakrishnan, Managing Director & Chief Executive Officer of Janalakshmi, said: “This is Janalakshmi’s debut bond issuance in the Indian domestic market and forms part of the Company’s long term financing strategy to raise capital from different types of investors.”
The successful bond issue enables the company to diversify the investor base and optimise the financing and capital structure going forward, he added.
