MICROCAPITAL BRIEF: SHARE Microfin Ltd of India Raises $11m Through Non-Convertible Debentures (NCD) with Assistance from Standard Chartered

SHARE Microfin Ltd, an Indian microfinance institution (MFI) with 2.4 million clients and a gross loan portfolio of USD 353 million, recently raised INR 500 million (USD 11 million) through a private placement of two-year, non-convertible debentures (NCD). The issue, which will be traded on the Bombay Stock Exchange, was assigned an LBBB+ rating by ICRA Ltd (formerly Investment Information and Credit Rating Agency of India Ltd), an associate of Moody’s Investors Service.

Standard Chartered Bank is the sole book runner and lead arranger of the issue. “Over the past year, we have successfully helped several leading MFIs raise an aggregate INR 2 billion (USD 44.4 million) via NCDs. A heartening feature of the SHARE issue is its two-year tenure, compared to the one-year tenure of the previous issues,” said Mr Joseph Silvanus, Head of Development Organizations in Southern Asia at Standard Chartered Bank.

By Stefanie Rubin, Research Associate

About SHARE Microfin Limited:

SHARE Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. It began operations in 1989 as a nonprofit. It has been a non-bank financial institution since 2000. It offers loans primarily to women as well as training and consulting. As of December 31, 2009, it has a gross loan portfolio of USD 353 million with 933 branches and over 2.4 million members.

About Standard Chartered PLC:

Headquartered in London, Standard Chartered is an international bank with a presence in over 70 countries. Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. The bank has over 1,600 branches in over 70 countries. Since the 1990’s, Standard Chartered has focused on developing its franchises in Asia, Africa and the Middle East.

As of 2008, Standard Chartered had extended USD 385 million in loans to 52 microfinance institutions, with an average loan size of USD 7 million.

Additional Resources:

Source Article: SHARE Microfin: SHARE Microfin Raises Rs 50 Crore Through NCD

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