SSFL Founder and Managing Director Padmaja Reddy said the proceeds will help the company scale its business at an accelerated pace.
Spandana Sphoorty Financial Ltd (SSFL) has raised Rs 337.5 crore through the issuance of market-linked debentures (MLD).
The market-linked debentures were issued at an 11 per cent yield and will mature in 30 months.
‘The MLD issue from SSFL, a non-banking financial company-microfinance institution (NBFC-MFI), received strong interest and participation from HNI (high networth individuals) investors, family offices and corporate treasuries,’ a statement said on Wednesday.
SSFL Founder and Managing Director Padmaja Reddy said the proceeds will help the company scale its business at an accelerated pace.
The statement added that investors will receive 11 per cent if the price of the benchmark government security (G-Sec) is at least 75 per cent of its current price at the maturity. If it falls to 50-75 per cent, investors will get a 10.5 per cent yield.
However, if the G-Sec price drops below 25 per cent of the current value, investors will get just their principal back, it said.
SSFL MLDs have been assigned a rating of IND PP-MLD A/ Stable by India Ratings, implying low creditrisk, the statement added.
The issuance was facilitated by CredAvenue, an online debt platform.
Hyderabad-headquartered SSFL has a presence in 18 states. It has over 1,000 branches with a customer base of around 25 lakh.
(PTI)
Source: Business World
