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Arohan Microfinance Raises Funds Through NCDs

August 14, 2014

Intellecap Group company @Arohan_Financial_SPrivate Limited has raised INR 440 Mn by issuing NCD's in two series to a Luxemborg based investor and to Microfinance Initiative for Asia (MIFA) Debt Fund.

The first, worth INR 290 Mn, has been issued to a Luxemborg based investor, and another worth INR 150 Mn has been issued to the Microfinance Initiative for Asia (MIFA) Debt Fund, which is sponsored by KFW, IFC, the EU and the German Ministry of Economic Development and managed by BlueOrchard Finance.

These debentures are Arohan's second and third series of securities respectively, to be listed on the BSE , and carry a rating of BBB by CARE.

The company is further seeking to issue more debentures in the future to diversify its financing sources.

Arohan which joined the Intellecap Group in 2012 after being acquired by @IntelleCashPrivate Limited for INR 520 Mn operates in the low income states of West Bengal, Bihar Assam and Jharkhand.

The funds are going to be directed towards expanding Arohan's presence across more low income states.

Since its inception, Arohan has raised funds from social investors (institutional and individuals) including Caspian Advisors Private Limited, Michael & Susan Dell Foundation (MSDF), India Financial Inclusion Fund and Lok Capital.

Last year it raised INR 220 Mn from Aavishkaar Goodwell II, Michael & Susan Dell Foundation and a new investor Swaminathan Ankleshwaria Aiyar.

Recent deals in this space:

Private Limited had raised INR 475 Mn through private placement of NCD's to Triodos Fund.

RGVN (North East) Microfinance Ltd, a microfinance institution headquartered in Guwahati, had raised INR 418 Mn from new investors Norwegian Microfinance Initiative (NMI), Norway and Oikocredit.

Pune based MFI Suryoday Micro Finance Private Limited had raised INR 270 Mn in a fresh round of funding from International Finance Corporation and existing backers, impact investment firms Lok Capital and Aavishkaar Goodwell India Services Limited.

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Source: DealCurry (India)

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