Spandana Sphoorty Innovative Financial Services Limited, a microfinance institution (MFI) based in Hyderabad, India, has raised funds by placing INR 25 crore, the equivalent of over USD 5.3 million, worth of commercial paper with an unnamed mutual fund.Commercial paper is a short-term debt instrument that is usually not backed by collateral. The deal was arranged by Rabo India Finance Limited, an international financial services provider based in India. Padmaja Reddy, the managing director of Spandana, has stated that the MFI plans to issue more commercial paper in the future.

By Christopher Maggio, Research Assistant

About:
Spandana Sphoorty Innovative Financial Services Limited

Description:
Spandana Sphoorty Innovative Financial Services Limited is a microfinance institution (MFI) based in India. It was founded in 1997 as a non-governmental organization (NGO) and is now a non-bank financial company. It offers loans, insurance, and fund transfer services.

Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/spandana

Organization’s Website:
http://www.spandanaindia.com/

Just the Facts:
- Country of Incorporation: India
- Year Founded: 1997
- Legal Status: Non-Bank Financial Company
- Total Assets: USD 359.5 million (as of 31/March/09)
- Gross Loan Portfolio: USD 245.2 million (as of 31/March/09)
- Number of Active Borrowers: 2.4 million (as of 31/March/09)
- Return on Assets: 6.89%
- Return on Equity: 51.16%
- Area of Operation: India
- Participant(s)/Backer(s)/Investor(s): Lok Capital
- Products: Loans, Insurance, Fund Transfer Services
- Main Funding: Loans, Shareholder Capital
- Managing Director: Padmaja Reddy

Contact Information:
Spandana Sphoorty Financial Limited
Plot No. 79. Vinayak Nagar, Care Crystal, Near Spencer Super Market, Gachibowli, Hyderabad-500032

Ph : +91 40 44386648

E-mail: contact@spandanaindia.com

MicroCapital’s Microfinance Universe profile: Spandana

Additional Resources:
VC Circle article entitled ‘Spandana Places Rs 25Cr Commercial Paper’: http://www.vccircle.com/500/news/spandana-places-rs-25cr-commercial-paper

Rabo India Financial Limited: http://www.rabobank.com/content/global/office_pages/Asia/India/

MICROCAPITAL STORY: Spandana Sphoorty Financial Ltd. Issues INR 800 million (USD 17 million) One-year 10 Percent Bonds in Deal Arranged by Standard Chartered Bank

MICROCAPITAL STORY: Hyderbad-based Spandana Microfinance Seeks to Raise Rs 300 Crore (USD 63.7 million) by June