India: Grameen Koota Raises Rs.35 Crores through Non-Convertible Debentures

Feb 2011
Bangalore, India, February, 24 2011 - Bangalore-headquartered, Grameen Financial Services Private Limited (popularly known as Grameen Koota) has raised INR 35 crore (~USD 8 million) 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 million) 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.


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