Satin Creditcare Approves ₹500 Million NCD Issue to Strengthen Funding Base

Satin Creditcare Network Ltd. has greenlit the issuance of 5,000 non-convertible debentures (NCDs), each with a face value of ₹100,000, aggregating to ₹500 million. The move is part of the company’s ongoing strategy to diversify funding sources and support its microfinance operations across India.

 

Key highlights:

 

- The NCDs are senior, secured, rated, listed, redeemable, and transferable, and will be issued on a private placement basis.

- The debentures are expected to carry a competitive coupon rate, with semi-annual interest payments and a fixed maturity period.

- The issuance has been approved under SEBI’s Regulation 30 and aligns with Satin’s broader capital raising framework authorized by shareholders.

 

Strategic rationale:

- Satin Creditcare aims to use the proceeds for onward lending, refinancing existing debt, and strengthening its liquidity position.

- The company has been actively managing its asset-liability profile, especially in light of recent credit cost pressures and monsoon-linked rural volatility.

- This issuance follows a series of similar placements in FY25, reflecting consistent demand from institutional investors.

 

Market context:

- Satin Creditcare is one of India’s leading microfinance institutions, operating in 23 states and serving over 3 million clients.

- The company reported a net profit of ₹186 crore in FY25, with assets under management exceeding ₹11,500 crore.

- Recent credit rating updates from CARE and CRISIL reaffirmed Satin’s BBB+ rating with a stable outlook.

 

This NCD issuance reinforces Satin’s commitment to responsible financial inclusion and prudent capital management.

 

Sources: Business Standard, Economic Times, BSE Filings, Screener.in, Dezerv.