Satin Creditcare in pact to raise Rs51 crore
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Mumbai: Satin Creditcare Network Ltd (SCNL), a microfinance institution, on Monday said it has signed a pact with Asia-focused specialist financial services fund SBI FMO Emerging Asia Financial Sector Fund Pte Ltd to raise Rs.51.3 crore.
SBI FMO Emerging Asia Financial Sector Fund is sponsored by SBI Holdings, Japan (formerly known as Softbank Investments) and Netherlands Development Finance Company (FMO). The fund is managed by SBI Ven Capital, the Singapore-owned subsidiary of SBI Holdings.
The firm has raised the funds by issuing equity shares and share warrants at a price of Rs.130 per share, the statement said. The funds raised will be used by SCNL to finance its ongoing growth strategy.
“We see a lot of potential in Satin as it is already one of the largest micro-finance institutions in India (with an asset size nearing $350 million) and importantly has a leadership position in the structurally under-penetrated and fastest growing region of northern India,” said Brijesh Pande, managing director and fund manager at SBI-FMO Fund, adding that robust macroeconomic growth is being complimented with significant policy and regulatory impetus by the Indian government to increase financial inclusion.
The lending portfolio of SCNL has grown from Rs.1,056 crore in March 2014 to Rs.2,140.6 crore in March 2015, the release said.