According to reports, Spandana Sphoorty Financial Ltd has gained around Rs 337.5 crore through the issuance of market-linked debentures (MLD). The market linked debenture were issued at an 11 per cent yield and is likely to mature within the next 30 months.
On Wednesday, a statement stated, “The MLD issue from the SSFL, a non banking financial company-microfinance institution (NBFC-MFI) received strong interest and participation from HNI (high net worth individuals) investors, family offices and corporate treasuries.” Padmaja Reddy, founder and managing director of Spandana Sphoorty Financial Limited explained that the proceeds will support the company to scale its business at an accelerated pace.
The statement further elaborated that the investors will obtain 11 per cent if the price of the benchmark government security (G-Sec) is almost around 75 per cent of its present price at the maturity. On the other hand, if the price drops to 50-75 per cent, investors will achieve 10.5 per cent yield. Furthermore, if the G-Sec price declines below 25 per cent of the present value, investors will only receive their principal back.
The statement affirmed that SSFL MLD’s have been entrusted a rating of IND PP-MLD A/ Stable by India Ratings suggesting a low credit risk.
The issuance was put forward by CredAvenue, an online debt platform. Spandana Sphoorty which is headquartered in Hyderabad provides it services in almost 18 states and posses around 1000 branches along with a customer base of nearly 25 lakh.
