-Grameen Koota sells INR250m debentures.
BANKING AND CREDIT NEWS-June 22, 2012--Grameen Koota sells INR250m debentures(C)2012 M2 COMMUNICATIONS http://www.m2.com
22 June 2012 - Indian micro lender Grameen Financial Services, or Grameen Koota, has sold INR250m (USD4.4m/EUR3.5m) worth of non-convertible debentures in a drive to restore its liquidity position and reinforce its loan operations, the company's managing director Suresh Krishna said as quoted by The Economic Times on Thursday.
The offer was arranged by Unitus Capital and is Grameen Koota's first debt sale since February 2011, when the company collected INR350m. In 2010, the lender sold debt worth INR200m. The NCDs are now trading on the Bombay stock exchange.
The NCDs will be financed by investment company responsAbility Social Investments AG.
Currently, the Bangalore-based company is awaiting clearance by India's central bank to convert itself into a non-banking finance company, which will help it diversify its funding stream. The company also expects to get an equity injection in the current year.
Grameen Koota provides financial services to poor and low-income Indian households, as well as social development services such as education, health, sanitation. As of end-June, the company's loan portfolio totalled INR3.2bn.
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