 "IFMR Capital executes Rs 150 cr NCD issuance for Janalakshmi Financial Svcs")
Alongside this, IFMR Capital also successfully executed an unsecured term loan transaction of Rs 27 crore, for Janalakshmi. This is the first unsecured term loan extended by IFMR Capital and will help Janalakshmi diversify sources of funding, help create assets and provide the flexibility to securitise them, said IFMR in a release.
"The NCD deal also reaffirms the acceptability of microfinance as an investment option for mutual fund houses. Mutual funds have made a comeback over the last 6-8 months as the ratings of individual MFIs have breached the "A" category barrier," said in the statement. Kshama Fernandes, CEO, IFMR Capital commented that "the NCD transaction represent a significant milestone for the microfinance sector demonstrating increasing investor confidence. Over the last few years the sector has emerged strong, resilient and transparent hence drawing interest from a large pool of mainstream investors".
Kshama added, "This is a first of its kind product from the IFMR Capital stable. The product meets a specific gap in the sector vis-a-vis access to unsecured sources of capital, besides providing the much sought after diversification".
Radhakrishnan, CEO, JFS commented that this is the largest single investor subscription to NCDs issued by JFS. Most microfinance institutions are primarily funded by banks and private equity players and it is therefore critical for MFIs to diversify their sources of funding.
IFMR Capital has so far structured, arranged and co-invested in more than 250 capital market transactions, including securitisations, senior and subordinated bond issuances, commercial paper issuances, ECBs and preference shares.
IFMR Capital has raised over Rs 13,000 crores for its clients until date. IFMR Capital's institutional clients are active in 410 plus districts across 26 states of India, reaching over 6.6 million active borrowers.