Grameen Koota, a division of Grameen Financial Services Private Limited, has raised INR 35 crore (USD 7.71 million) of debt capital through the issuance of secured, redeemable, nonconvertible debentures (NCDs) to Developing World Markets Limited, a member of US-based asset manager and investment bank Developing World Markets (DWM) Group. Grameen Koota Managing Director Suresh Krishna calls the transaction a “great milestone” for the microfinance institution (MFI) given the current lack of liquidity in the Indian microfinance industry. The transaction was structured and facilitated by Unitus Capital, a financial advisory firm based in India. This marks Grameen Koota’s second NCD issuance, having similarly raised INR 20 crore (USD 4.41 million) of debt capital in January 2010 [2].
As of March 2010, Grameen Koota reported total assets of USD 68.1 million, a gross loan portfolio of USD 52.1 million, return on assets of 0.40 percent and return on equity of 2.56 percent.
By Jacqueline Foelster, Research Associate
About Grameen Financial Services Private Limited (Grameen Koota): Grameen Koota, founded in 1999 as a division of Grameen Financial Services Private Limited, is a microfinance institution (MFI) based in Bangalore, India. Grameen Koota began with funding from Grameen Trust, an India-based non-governmental organization that supports microfinance globally through funding, training and technical assistance. Grameen Koota provides credit to low-income households through 117 branches in the Indian states of Karnataka and Maharashtra. It is one of the first MFIs to have used Mifos, an open source management information system backed by the US-based Grameen Foundation that aids in the monitoring of borrowers and portfolios. As of March 2010, Grameen Koota reports total assets of USD 68.1 million, a gross loan portfolio of USD 52.1 million, a return on assets of 0.40 percent and a return on equity of 2.56 percent.
About Developing World Markets (DWM): Developing World Markets (DWM) is a US-based asset manager and investment bank dedicated to making socially positive investments to promote sustainable economic development. It provides both debt and equity investments to microfinance institutions (MFIs) and other socially motivated organizations. It currently has USD 600 million assets under management and has invested in approximately 100 MFIs in approximately 30 countries.
About Unitus Capital: An affiliate of Unitus Incorporated, a nonprofit with operations in India and the US that works to reduce poverty, Unitus Capital is a financial advisory firm that specializes in arranging capital for microfinance institutions (MFIs) and other enterprises that aim to benefit the poor. Although Unitus Incorporated is shifting its efforts from supporting microfinance initiatives to other social ventures, Unitus Capital continues to aim to show that microfinance can be sustainable as a commercial business model. Based in Bangalore, India, Unitus Capital offers financial advisory and capital markets services to clients in Asia. Between 2004 and 2010, Unitus Capital reports having arranged USD 25 million in debt capital for microfinance institutions (MFIs). Annual data for Unitus Capital is unavailable.
Sources and Resources
[1] Unitus Capital Press Release, February 24, 2011, “Grameen Koota Raises Rs. 35 Crores through Non-Convertible Debentures”, http://unituscapital.com/news-information/press-releases/grameen-koota-raises-rs.35-crores-through-non-convertible-debentures
[2] MicroCapital.org Article, January 22, 2010, “Indian Microfinance Instutition Grameen Koota Raises $4.2m from MicroVest Purchase of Non-convertible Debentures (NCDs)”, https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-grameen-koota-raises-42m-from-microvest-purchase-of-non-convertible-debentures-ncds/
MicroCapital Microfinance Universe Profile: Grameen Financial Services Private Limited (Grameen Koota), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Koota
MicroCapital Microfinance Universe Profile: Developing World Markets (DWM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29
MicroCapital Microfinance Universe Profile: Unitus Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Capital
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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