Spandana Sphoorty Financial Ltd approved a ₹1.50 billion NCD issue, including a ₹750 million green shoe option, with up to 15,000 debentures. The funds will support microfinance expansion and liquidity needs. This strategic fundraising highlights the company’s focus on sustainable growth and investor confidence in India’s debt markets.
Spandana Sphoorty Financial Ltd, a leading microfinance institution, has announced the approval of a non-convertible debenture (NCD) issuance worth ₹1.50 billion, including a ₹750 million green shoe option. The board has cleared the issuance of up to 15,000 NCDs, marking a significant fundraising initiative aimed at strengthening the company’s capital base and supporting its lending operations.
Key highlights from the announcement:
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Issue Size: ₹1.50 billion, with half allocated to a green shoe option to meet excess demand.
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Instrument: Up to 15,000 NCDs approved, offering fixed-income investors a secure opportunity.
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Purpose: Funds will be utilized to expand microfinance lending, enhance operational liquidity, and diversify funding sources.
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Investor Appeal: The NCDs are expected to attract institutional and retail investors seeking stable returns amid market volatility.
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Strategic Move: This issuance underscores Spandana’s focus on sustainable growth and its ability to tap debt markets effectively.
The move comes at a time when microfinance institutions are scaling up to meet rising credit demand in rural and semi-urban India. Spandana’s fundraising initiative is expected to bolster its lending capacity and reinforce investor confidence.
Sources: Business Standard, Moneycontrol, Economic Times