Satin Creditcare Network to raise $5 million in bonds with 11.32% all-inclusive cost

Microfinance company Satin Creditcare Network said that it will raise $5 million in bonds at an all-inclusive cost of 11.32 percent. The bonds are proposed to be issued on September 25 and will mature after 36 months, the company said in a regulatory filing to stock exchanges Wednesday.

The coupon for the bonds is 7.9 percent, which is linked to the secured overnight financing rate (SOFR), while the all inclusive cost is 11.32 percent including hedging cost, a senior company official said. The coupon has been fixed 335 basis points over six months SOFR.

The interest on the bonds shall be payable semi-annually. The bonds shall be redeemed on a pari passu basis by the company by making the payment of the outstanding principal amounts on the maturity date, Satin said.


Pertinent to note that the microfinance lender last week raised Rs 120 crore in a securitization deal with HSBC India at 9.30 percent.