MICROCAPITAL BRIEF: India’s Ujjivan Financial Services Raises Debt Capital Worth $10m Through Issuance of Non-Convertible Debentures (NCDs) to International Finance Corporation (IFC)

Ujjivan Financial Services, an Indian microfinance institution (MFI), has raised INR 60 crores (USD 10 million) debt capital by issuing listed, secured and redeemable non-convertible debentures (NCDs) to the International Finance Corporation (IFC), the private-investment arm of the World Bank Group. This is in addition to the INR 50 crores (USD 7.9 million) in debt capital raised by Ujjivan during 2013 through issuance of NCDs to Dutch investment fund Oikocredit.
As at March 31, 2013, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207 million, return on assets (ROA) of 3.36 percent, return on equity (ROE) of 11.79 percent and 855,000 active borrowers. Ujjivan, which does not accept deposits has 322 branches that serve clients in 21 states in India.
By Hope Gitangu, Research Associate

About Ujjivan Financial Services

Ujjivan Financial Services is a microfinance institution (MFI) based in Bangalore, India, that was founded in 2004.While it does not accept deposits, Ujjivan offers life insurance, educational loans, emergency loans and business loans. Ujjivan mainly focuses on low -income women in urban and semi-urban areas. As at March 31, 2013, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207 million, return on assets (ROA) of 3.36 percent, return on equity (ROE) of 11.79 percent and 855,000 active borrowers.

About the International Finance Corporation (IFC)

The International Finance Corporation (IFC) is a US-based multilateral development bank and member of the World Bank Group. It offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] Business Line,” Ujjivan Financial raises Rs 60 cr via NCDs”

http://www.thehindubusinessline.com/companies/ujjivan-financial-raises-rs-60-cr-via-ncds/article6186290.ece


Microcapital, July 15, 2014, India-based Ujjivan Financial Services Disburses Loans Totaling $166m Via Direct Deposit to Bank Accounts

MicroCapital, September 23, 2013, Ujjivan Financial Services Raises $7.9m from Oikocredit for On-Lending to Microfinance Clients

MicroCapital, August 8, 2013, Standard Chartered Bank (SCB) Loans $13m to Indian MFIS Janalakshmi Financial Services Private Limited, Ujjivan Financial Services Private Limited

MicroCapital Universe: Ujjivan Financial Services

MicroCapital Universe: International Finance Corporation (IFC)

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