Satin Creditcare Network Ltd has announced that its board will consider raising funds through the issuance of non-convertible debentures (NCDs). The move aims to support business growth and strengthen liquidity, reflecting the microfinance lender’s prudent approach to capital management.
Satin Creditcare Network Ltd, a prominent microfinance institution in India, has informed stock exchanges that its board of directors will consider a proposal to raise funds via non-convertible debentures (NCDs). The decision will be discussed at an upcoming board meeting, as per regulatory disclosures.
The proposed fund-raising exercise is part of the company’s broader capital planning strategy and is expected to enhance liquidity and support lending operations. Issuing NCDs allows the company to diversify its funding sources while maintaining equity stability, as these instruments do not convert into shares.
For microfinance companies like Satin Creditcare, access to diversified debt funding is critical to sustaining loan growth, managing asset-liability mismatches, and optimizing borrowing costs. Market participants will closely watch the size, tenure, and pricing of the proposed NCD issuance once detailed terms are finalized.
The announcement underscores Satin Creditcare’s focus on balance sheet strength and long-term growth, especially as credit demand remains strong in the microfinance and financial inclusion segments.
Key Highlights
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Board to consider fund raising through non-convertible debentures
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Proposal to be discussed in an upcoming board meeting
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NCDs help diversify funding without equity dilution
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Funds likely to support lending growth and liquidity
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Reflects proactive capital and balance sheet management
Sources: Satin Creditcare Network Ltd Exchange Filing; Stock Exchange Disclosures; Corporate Announcements