SHARE Microfin raises Rs 50 crore through NCD
26 April 2010
Hyderabad: SHARE Microfin Limited (SHARE), one of the largest microfinance institutions in India, has raised Rs 50 crore through a private placement of 2-year non-convertible debentures (NCD). The issue, assigned an LBBB+ rating by ICRA on its long-term rating scale and placed with institutional investors, will be traded on the Bombay Stock Exchange.
“The listing of the issue on the stock exchange will not only provide SHARE greater capital market exposure but also ensure further assurance of the company’s transparency and governance standards,” said Mr Udaia Kumar, the Managing Director of SHARE. “The funds raised will also help further the company’s expansion plans.”
Standard Chartered Bank is the sole book runner and lead arranger of the issue. Complimenting SHARE on closing the transaction successfully, Mr Joseph Silvanus, Head, Development Organisations, Southern Asia, Standard Chartered Bank, said the transaction was in line with the Bank’s agenda of helping MFIs diversify their funding sources by facilitating access to the capital markets.
“Over the past year, we have successfully helped several leading MFIs raise an aggregate Rs 200 crore via NCDs,” Mr Silvanus said. “A heartening feature of the SHARE issue is its two-year tenure, compared to the one-year tenure of the previous issues. Given the importance of microfinance institutions in India’s economic development, Standard Chartered will continue to support these organisations in raising long-term funds at competitive rates through capital market structures.”
SHARE Microfin raises Rs 100 crore Subordinated Debt from SIDBI
05 April 2010
Hyderabad: SHARE Microfin Limited (SHARE), one of the largest micro-finance institutions in India, has raised Rs 100 crore by way of issuing eight-year unsecured, redeemable Non-Convertible Debentures (NCDs) on a private placement basis, the first of its kind in the industry. ICRA has already assigned LBBB rating to this long-term debt instrument. The debentures, issued in dematerialized format, would be listed on the Bombay Stock Exchange (BSE).
The entire issue of 1,000 redeemable, transferable, unsecured, Non-Convertible Debentures of Rs 10 lakh face value each, aggregating to Rs 100 crore have been subscribed by Small Industries Development Bank of India (SIDBI), the country’s premier financial institution for small and medium enterprises and the microfinance institutions in India.
Announcing the development, Mr Udaia Kumar, the Managing Director of SHARE, said, “NCD issue is a relatively new avenue for microfinance institutions and the eight –year unsecured NCD issue is a significant event for SHARE Microfin Limited. As it is treated as subordinated debt, this instrument will qualify for Tier II capital
of the company. This will also address the growing debt and capital needs of SHARE. The new funding channel will diversify the funding sources for SHARE and will provide further exposure to the capital markets.”
SBI sanctions Rs 200 crore for SHARE Microfin Limited
22 March 2010
Hyderabad: For the very first time in the MFI sector, State Bank of India (SBI), the country’s largest commercial bank in terms of profits, assets, deposits, branches and employees, has sanctioned a term loan of Rs 200 crore for SHARE Microfin Limited (SHARE), one of the oldest and largest microfinance institutions in India, for its on-lending operations in Chhattisgarh, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh. This is for the first time SBI has sanctioned a term loan of this size to any microfinance institutions in India. The term loan would help SHARE promote the agri, animal husbandry, micro, small & medium enterprises and cottage industry structure providing alternative and additional income to a large number of poor women in these states.
Announcing this landmark transaction, Mr Udaia Kumar, the Managing Director of SHARE, said, “SHARE is the first to get such a big amount from the State Bank of India group and also from a public sector bank. This is a significant event for the company. This would certainly help SHARE in its efforts to reduce poverty, thereby pulling out millions of people from Below Poverty Line.”
Cash Management Services
In addition SBI has offered to provide integrated Cash Management Services (CMS) to SHARE, initially to its 50 branches spread across the country. Through an Internet banking platform, the CMS would seamlessly network with these branches. This breakthrough facility would help SHARE manage the cash flows in a more efficient way. The integrated online CMS would also strengthen the MIS and facilitate the bank reconciliation process as bank balances would be available at a click. SHARE already has ‘stand alone’ accounts with more than 300 SBI branches in rural areas, which would be integrated into the CMS network soon.
“As most of the disbursements and collections are done in cash, robust and efficient cash management system is crucial. Cash movement is always a great risk and the CMS facility is a tool for mitigating this risk and improving the efficiency and controls of the system,” said Mr Udaia Kumar.
London Mayor, Mr Ian Luder visits SHARE
19 October 2009 - Business Line
Muminpet (Medak Dist): “Why many in India continue to live in poverty when the United Kingdom is rich and developed?
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