Ujjivan Financial Services, an Indian microfinance institution, recently raised INR 450 million (USD 10 million) through a private placement of non-convertible debentures to undisclosed institutional investors. Standard Chartered Bank, a UK-based international financial services provider, is the sole underwriter for the issue.
According to Ujjivan Chief Financial Officer Mrs Sudha Suresh, “Ujjivan is aiming at benefitting from a lower cost of funding and diversified portfolio of debt funding with a greater capital market exposure” [1].
The non-convertible debenture issue was listed on the Bombay Stock Exchange with a disclaimer-as is common practice in India-stating that the placement was not open to the public. This type of issue avoids the extensive procedural requirements normally required to list on the Indian stock exchanges.
By Jennifer Shevock, Research Associate
About Ujjivan Financial Services:
Ujjivan Financial Services is an Indian microfinance instituation created under the guidance of Grameen Bank of Bangladesh to financially serve and empower poor working women in urban and semi-urban regions in India. Its total assets are USD 72 million for fiscal year ended March 31, 2010.
Sources and Additional Resources:
[1] “Ujjivan Microfinance raises Rs 45 Crore” August 4, 2010.
http://indiamicrofinance.com/ujjivan-microfinance-debenture45.html
MICROCAPITAL BRIEF: “Indian Microfinance Institution Ujjivan Financial Services Reduces Interest Rates, Following Lead of Bandhan Financial Services Private Limited” June 16, 2010. https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-ujjivan-financial-services-reduces-interest-rates-following-lead-of-bandhan-financial-services-private-limited/#more-5175
MICROCAPITAL UNIVERSE: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ujjivan
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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