CreditAccess Grameen Raises Rs 300 Crore Via NCD Issuance

CreditAccess Grameen has raised Rs 300 crore through private placement of NCDs. The issuance features two series with coupon rates of 9.15% and 9.25%.

Reader Takeaway: The debt issuance supports lending operations with asset-backed security, reinforcing the company's routine capital-raising strategy.

What just happened

CreditAccess Grameen has completed the allotment of non-convertible debentures (NCDs) on a private placement basis. The issuance is structured into two series: Series I raised Rs 100 crore with a 24-month tenure, and Series II raised Rs 200 crore with a 36-month tenure. The debentures carry fixed coupon rates of 9.15% and 9.25%, respectively, and will be listed on the BSE Wholesale Debt Market.

Why this matters

This capital infusion is part of the company’s regular liquidity management to support its microfinance lending operations. By securing these funds, the company maintains its credit pipeline while adhering to a structured repayment schedule. The inclusion of a first-ranking exclusive charge over hypothecated loan receivables provides an additional layer of security for the debenture holders.

Security and Terms

The NCDs are senior, secured, and transferable instruments. CreditAccess Grameen is required to maintain a security cover of at least one time the outstanding principal plus accrued interest. A penal interest provision of 2% per annum applies if there is a payment default, ensuring stringent adherence to the stipulated repayment terms.

What to track next

Investors should monitor the company’s quarterly updates regarding its overall debt-to-equity ratio and asset quality, as the company continues to leverage its balance sheet for growth in the rural micro-lending sector.