Bangalore-headquartered, Grameen Financial Services Private Limited (popularly known as Grameen Koota) has raised INR 35 crore (~USD 8 mn) of debt capital through an issuance of secured, redeemable, nonconvertible debentures (NCDs) to DWM (Cyprus) Limited, a member of the Developing World Markets (DWM) group of companies. This is Grameen Koota’s second NCD issuance, having previously raised Rs 20 crore (~USD 4 mn) of debt capital through the issuance of NCD to MicroVest. Unitus Capital was the exclusive financial advisor and sole arranger to the issue.
The NCDs are listed on the Bombay Stock Exchange and have been fully subscribed to by DWM Cyprus. DWM is an investment bank and asset manager exclusively dedicated to making socially positive investments in order to promote sustainable economic and social development on a global scale.
Commenting on the landmark deal, Suresh Krishna, Managing Director, Grameen Koota, said, "This transaction is a great milestone for Grameen Koota and is very critical given the current liquidity position of the industry. We are proud of this landmark transaction with DWM."
Complimenting Grameen Koota, Jim Kaddaras, Partner for Debt, Structuring and Legal Affairs at DWM, said, "We could not be more pleased about the closing of this transaction, as we have known Grameen Koota for half a dozen years and have followed its remarkable progress with great admiration. DWM is committed to the achievement of Grameen Koota’s financial and social goals, and to the success of the microfinance sector in India, which we hope to support further in 2011." The transaction confirms the inherent strength of Grameen Koota’s operations and highlights the leadership role played by DWM and Unitus Capital in global microfinance.
"Given the current status of the sector, banks are wary of lending to MFIs. As such, it has become even more critical for MFIs to diversify their funding sources. The transaction has helped Grameen Koota raise bulk funding at competitive rates and reaffirm the positive investor sentiments towards the Company and the sector in general. Unitus Capital takes pride in having structured and facilitated this transaction with a pioneering MFI and a leading microfinance investor," stated Gautam Verma, Director, Unitus Capital.
About Grameen Financial Services Private Limited (Grameen Koota)
Grameen Koota is a well known MFI, headquartered in Bangalore. An NBFC registered with the Reserve Bank of India, Grameen Koota has over 450,000 members with over 2,000 employees working out of over 200 branches in Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh.
Developing World Markets is at the forefront of a global effort to create investible solutions to meet social and economic needs of the developing world. DWM structures transactions that open doors to the international capital markets for microfinance institutions and other socially motivated organizations. To date, DWM has raised or advised on over $850 million for microfinance and other socially positive sectors. It currently manages over $650 million in socially positive assets. For more information, visit www.dwmarkets.com
About Unitus Capital:
Unitus Capital is a financial services firm specializing in arranging capital for companies benefiting those at the bottom of the economic pyramid in sectors including microfinance, renewable energy, health care and education. With operations in Bangalore, Beijing, London, Singapore and Sydney, Unitus Capital delivers a range of financial advisory and capital market services to clients across Asia. For more information, visit www.unituscapital.com
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