Bangalore based microfinance institution Grameen Financial Services Private Limited, also known as Grameen Koota, has successfully raised INR 25 Crores (USD 5 million) in debt funding through an issue of secured, redeemable non-convertible debentures (NCDs).
The NCDs, which are also listed on the Bombay Stock Exchange, will be fully financed through funds advised by responsAbility Social Investments AG (responsAbility), which is one of the world’s leading impact investment companies. This NCD issue is similar to last year’s INR 35 Crores NCD issued by Grameen Financial Services Private Limited.
This transaction is an important milestone for Grameen Koota and will help the microfinance institute improve their liquidity situation and disburse loans to many of the waiting borrowers. Further, the NCD investment from a globally leading impact investment firm is a demonstration of faith on the performance of the company’s commitment to financial inclusion.
Udaya Kumar, CEO, Grameen Financial Services Pvt. Ltd. sais about the transaction social-oriented investors along with greater support from domestic banks and institutions, we will be able to consolidate as an efficient MFI”.
Grameen Financial Services Private Limited currently has about 1,300 employees working out from 168 branches in Tamil Nadi, Maharashtra and Karnataka and assets under management add up to more than US 1 billion.