Spandana Sphoorty Financial raises Rs 337.5 crore via market-linked debentures

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Spandana Sphoorty Financial Ltd (SSFL) has raised Rs 337.5 crore through the issuance of market-linked debentures (MLD). The market-linked debentures were issued at an 11 per cent yield and will mature in 30 months.

"The MLD issue from SSFL, a non-banking financial company-microfinance institution (NBFC-MFI), received strong interest and participation from HNI (high networth individuals) investors, family offices and corporate treasuries," a statement said on Wednesday. SSFL Founder and Managing Director Padmaja Reddy said the proceeds will help the company scale its business at an accelerated pace.

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The statement added that investors will receive 11 per cent if the price of the benchmark government security (G-Sec) is at least 75 per cent of its current price at the maturity. If it falls to 50-75 per cent, investors will get a 10.5 per cent yield. However, if the G-Sec price drops below 25 per cent of the current value, investors will get just their principal back, it said.

SSFL MLDs have been assigned a rating of IND PP-MLD A/ Stable by India Ratings, implying low creditrisk, the statement added. The issuance was facilitated by CredAvenue, an online debt platform. Hyderabad-headquartered SSFL has a presence in 18 states. It has over 1,000 branches with a customer base of around 25 lakh.