Satin Creditcare Network, a prominent microfinance company, has announced plans to raise $5 million through the issuance of bonds at an all-inclusive cost of 11.32 percent. According to a regulatory filing made to the stock exchanges on Wednesday, the bonds are set to be issued on September 25 and will have a maturity period of 36 months.
The bonds will offer semi-annual interest payments to investors. At maturity, Satin Creditcare Network will redeem the bonds on a pari passu basis, meaning that all bondholders will receive payment of the outstanding principal amounts equally and proportionally on the maturity date.
This bond issuance follows Satin Creditcare Network’s recent financial activities. Just last week, the company successfully raised Rs 120 crore through a securitization deal with HSBC India, securing funds at an interest rate of 9.30 percent. The securitization deal involved pooling of certain financial assets and selling them to HSBC India, a move aimed at strengthening the company’s liquidity and capital base.
The decision to issue bonds at a higher interest rate reflects Satin Creditcare Network’s strategic move to attract investors in a competitive market while addressing its funding needs for growth and operations. By offering bonds with a significant return, the company aims to ensure a steady influx of capital necessary for its expansion and sustainability in the microfinance sector.
This bond issuance is a crucial step for Satin Creditcare Network as it continues to manage and grow its financial operations amidst evolving market conditions and regulatory environments.
