Ujjivan to raise NCD through domestic Mutual Fund December: Ujjivan Financial Services, a leading microfinance institution with pan-India presence, has raised Rs. 50 Crores from domestic Mutual Fund through issuance of listed, secured, redeemable, non-convertible debentures (NCDs) and IFMR Capital were the sole arrangers to the Issue. Ujjivan Financial Services has headquarter at Bangalore.
For the Microfinance sector this is the first Investment by domestic Mutual Funds in a debt instrument in an MFI. The NCDs issued by Ujjivan were subscribed to by two funds managed by UTI Asset Management Company Limited ' UTI Income Opportunities Fund and the UTI Unit Linked Insurance Plan.
Samit Ghosh, Founder and Managing Director, Ujjivan Financial Services Private Limited said, 'This transaction is a big milestone for both the sector and for Ujjivan, it represents remarkable investor confidence in the sector. In addition, this transaction has underscored investors' faith in Ujjivan's mission, business model and quality of operations.'
Speaking on the success of the first microfinance NCD subscribed to by a mutual fund investor, Sudha Suresh, CFO, Ujjivan said 'this NCD issuance has reinforced Ujjivan's position as a high-quality lender to the urban poor and signifies the confidence of yet another class of investors in the Company and the sector.'
Speaking on the NCD issuance Dr. Kshama Fernandes, CEO, IFMR Capital said, 'UTI AMC's subscribing to the NCDs issued by Ujjivan is a significant breakthrough for the sector in terms of bringing back a valuable class of investor to the sector and is another step forward for Ujjivan & IFMR Capital in our financial inclusion journey.'
News Posted: 15 December, 2014
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