MICROCAPITAL BRIEF: Standard Chartered Arranges $10m Commercial Paper Issuance for SKS Microfinance of India

According to a press release submitted to MicroCapital, Standard Chartered, an international bank headquartered in London, has arranged a USD 10 million, 1-year paper issuance for SKS Microfinance, an Indian microlender, which was subscribed through an unnamed mutual fund. The issuance will reportedly benefit 65,000 rural households in India “by meeting their financial needs through the availability of income generating / business loans” [1]. As of September 2009, SKS had 1,676 branches, compared with 771 branches in March 2008.

By Julia Korn, Research Associate

About Standard Chartered PLC:

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 approximately 1,750 branches in 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.

About SKS Microfinance:

SKS Microfinance is a microfinance institution (MFI), launched in 1998, that caters to women clients in India. In 2005, it transformed into a for-profit non-banking financial company (NBFC) and on July 28, 2010, launched India’s first microfinance institution initial public offering. As of September 2009, SKS had 1,676 branches, compared with 771 branches in March 2008. According to the MIX Market, the microfinance information clearinghouse, its total assets, as of March 31, 2009, were USD 596 million with 3.5 million active borrowers, and it reported return on assets of 3.68 percent and return on equity of 18.72 percent. SKS Microfinance offers products including: income generating loans, mid-term loans, individual loans, loan cover insurance and health insurance. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus.

Sources and Additional Resources:

[1] Submitted to MicroCapital by Standard Chartered on August 18, 2010.

MicroCapital. “MICROCAPITAL BRIEF: Indian Microfinance Institution Ujjivan Financial Services Raises $10m Through Issue of Non-Convertible Debentures (NCDs)” by Jennifer Shevock on August 12, 2010. https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-ujjivan-financial-services-raises-10m-through-issue-of-non-convertible-debentures-ncds/

MicroCapital. “MICROCAPITAL BRIEF: SHARE Microfin Ltd of India Raises $11m Through Non-Convertible Debentures (NCD) with Assistance from Standard Chartered” by Stefanie Rubin on May 17, 2010. https://www.microcapital.org/microcapital-brief-share-microfin-ltd-of-india-raises-11m-through-non-convertible-debentures-ncd-with-assistance-from-standard-chartered/

MicroCapital Universe. Standard Chartered PLC. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC

MicroCapital Universe. SKS Microfinance. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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