HYDERABAD: Spandana Sphoorty Financial, the second-largest microfinance firm, has raised Rs 80 crore by issuing one year non-convertible debentures (NCDs) redeemable at a premium of 10%. Standard Chartered Bank India has subscribed to NCDs.
The Hyderabad-based company also has a greenshoe option of Rs 220 crore, which can be explored eventually with the investors. “The issue of NCDs has helped us diversify our funding sources. As we have to repay the loan after one year in a single-installment, the funds will help us reach out to low-income households in seven new states,” said.
Padmaja Reddy, managing director, Spandana. The company claims it to be the highest amount raised by any microfinance institution through the NCD route.