Sahayata Microfinance, an Indian microfinance institution (MFI), has raised INR 195 million (USD 4.4 million) through the issue of secured, redeemable non-convertible debentures (NCDs) listed on the Bombay Stock Exchange. The entire offering has been purchased by DWM (Cyprus) Limited, a subsidiary of US-based asset manager and investment bank Developing World Markets. IFMR Capital, a non-banking finance company (NBFC) based in Chennai, India, served as financial advisor for the issue.
Sahayata Microfinance is based in Udaipur, Rajasthan, and was established in 2006. According to the US-based nonprofit Microfinance Information Exchange (MIX) Sahayata Microfinance reported total assets of USD 26.4 million, a gross loan portfolio of USD 20.2 million, return on assets (ROA) of 6.34 percent and 139,179 active borrowers as of March 31, 2010. According to Managing Director and CEO Ajay Verma, this is the first time that the microfinance institution (MFI) has accessed funds through listed bonds [1].
Jim Kaddaras, Partner for Debt, Structuring and Legal Affairs at Developing World Markets expressed the firm’s interest in “financing socially committed MFIs with strong management teams like Sahayata” [1]. Vineet Sukumar, Head of Origination and Treasury at IFMR Capital, called the deal “another milestone in IFMR Capital’s efforts to provide high quality originators access to debt capital markets” [1].
By Rohan Trivedi, Research Associate
About Sahayata Microfinance:
Sahayata Microfinance, founded in 2006, is an Indian microfinance institution (MFI) based in Udaipur, Rajasthan. Sahayata currently operates in eight states and offers a range of credit and insurance products. As of March 31, 2010, Sahayata Microfinance reported total assets of USD 26.4 million, a gross loan portfolio of USD 20.2 million, return on assets (ROA) of 6.34 percent, return on equity (ROE) of 17.46 percent and 139,179 active borrowers.
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. As of March 2011, it has USD 880 million of assets under management and has invested in approximately 140 MFIs worldwide.
About IFMR Capital:
IFMR Capital, previously known as IFMR Trust Guarantee Company, is a non-banking finance company based in Chennai, India. It aims to provide access to capital for municipalities and institutions in sectors such as rural and urban financial services, rural small and medium-enterprises, rural infrastructure and agriculture.
Sources and Additional Resources:
[1] IFMR Blog: “IFMR Capital advises Sahayata Microfinance in raising Rs. 195 Mn through NCDs”, http://ifmrblog.com/2011/04/13/ifmr-capital-advises-sahayata-microfinance-in-raising-rs-195-mn-through-ncds/
MicroCapital.org Article, January 20, 2010, “MICROCAPITAL BRIEF: IFMR Capital Structures $6.5m Securitization of Microloans Originated by Four Microfinance Institutions in India”, https://www.microcapital.org/microcapital-brief-ifmr-capital-structures-65m-securitization-of-microloans-originated-by-four-microfinance-institutions-in-india/
MicroCapital.org Article, October 1, 2010, “MICROCAPITAL BRIEF: Avendus Capital of India Invests $8.25m in Securitized Microloans”, https://www.microcapital.org/microcapital-brief-avendus-capital-of-india-invests-8-25m-in-securitized-microloans/
MicroCapital Universe Profile: Sahayata Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sahayata%20Microfinance
MicroCapital Universe Profile: Developing World Markets (DWM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29
MicroCapital Universe Profile: IFMR Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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