Spandana raises Rs 80 cr from NCD issue

HYDERABAD: Spandana Sphoorty Financial, the second-largest microfinance firm, has raised Rs 80 crore by issuing one year non-convertible debentures (NCDs) redeemable at a premium of 10%. Standard Chartered Bank India has subscribed to NCDs.

The Hyderabad-based company also has a greenshoe option of Rs 220 crore, which can be explored eventually with the investors. ���The issue of NCDs has helped us diversify our funding sources. As we have to repay the loan after one year in a single-installment, the funds will help us reach out to low-income households in seven new states,���
said.

Padmaja Reddy, managing director, Spandana. The company claims it to be the highest amount raised by any microfinance institution through the NCD route.