India: Satin Raises $30 Mn in Bonds from Netherland's FMO

Dec 2018
India, December, 14 2018 - Satin Creditcare Network has raised $30 million in bonds from the Netherlands Development Finance Company (FMO) at a time when the sector is slowly getting over the credit squeeze hangover.

Satin, the third largest MFI in terms of gross loan portfolio, said the fund-raising will help it in business expansion in new territories.

The MFI has a portfolio of Rs 5,561 crore at the end of September, which grew 39 per cent year on year. This was in contrast to NBFC-MFI sector's 58 per cent growth on an average.

"With the new capital pool at our disposal, we will be looking at strengthening our ongoing credit lending services to a larger section of our existing and potential customer base," Satin's Chairman HP Singh was quoted as saying in a statement issued by the company.

The sectoral growth was believed to have slowed down in October and November following the IL&FS-led credit crisis. The captains of the industry said the difficult phase is over now.

The MFI has recently forayed in digital lending 'Loan Dost' for its urban borrowers to enhance the business portfolio.

The fresh investment will support Satin's planned expansion in east and northeast states while it has slowed business in Madhya Pradesh as propensity to default has risen there.

The contribution of business from India's largest state has shrunk to less than 10 per cent from 15 per cent before 2017.

The MFI has also shrunk its business in Uttar Pradesh to 24 per cent from 40 per cent earlier to avoid concentration risk and has decided to reduce it further to below 20 per cent by 2020 as a long-term strategy.



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