SSFL, Spandana Sphoorty Financial Ltd has raised about 337.5 Cr through the market linked debenture insurance. These debentures were issued at an 11 % yield rate and will be maturing after a period of 30 months.
A statement by the company on Wednesday said, “The MLD issue from SSFL, a non-banking financial company-microfinance institution (NBFC-MFI), received strong interest and participation from HNI (high net worth individuals) investors, family offices and corporate treasuries.”
Padmaja Reddy, the SSFL founder and Managing Director mentioned that this will help their company scale. She later said that, “We are excited to partner with CredAvenue in this landmark transaction. It is good to see heightened interest from retail investors in both our companies and the microfinance sector. Funds raised through this insurance will help us scale our business profitably at an accelerated pace.”
If at all it falls to 50-70 per cent, the Investors will be getting back a yield of 10.5 %. Incase the G-Sec price drop below 25 per cent of its current valuation, then the investors will be getting back their principal.
This insurance was facilitated by CredAvenue, which is an online debt issuing platform. It has a presence in 18 states, over 1000 branches across the country with a customer base of just more than 25 Lakh.
SSFL MLDs have been assigned the rating of IND PP-MLD A/ Stable by the India Ratings, which implies a very low credit risk.
