Ujjivan raises its first CP through domestic Mutual Fund

Bangalore-headquartered Ujjivan Financial Services, a leading microfinance institution with pan-India presence, has raised Rs. 50 Crores from a domestic Mutual Fund through placement of Commercial Paper and IFMR Capital was the sole arranger to the Issue.

This is the first CP issuance by Ujjivan and represents the Company's enhanced acceptability amongst domestic capital markets investors. The 3 month tenor issuance was rated A1 by CRISIL.

Mr. Samit Ghosh, Founder and Managing Director, Ujjivan Financial Services Private Limited said, "This transaction is a big milestone for both the sector and for Ujjivan as one of the largest MFIs in the sector as it represents remarkable investor confidence in the sector. In addition, this transaction has underscored investors' faith in Ujjivan."

Speaking on the success of the first CP subscribed to by a mutual fund investor, Ms. Sudha Suresh, CFO, Ujjivan said "this issuance signifies the opening up of yet another avenue of funding to the sector. The pricing benchmark set by Ujjivan reinforces its strong positioning and confidence of its Investors as a high-quality lender. Increased diversification in funders as well as instruments of fund-raising will further improve efficiencies for Ujjivan which will translate into lowering of cost of lending to our borrowers."

Speaking on the CP issuance Dr. Kshama Fernandes, CEO, IFMR Capital said, "The CP issuance by Ujjivan is a significant breakthrough in terms of opening up yet another instrument of fund-raising for the sector and set pricing benchmark and is another step forward for Ujjivan & IFMR Capital in our financial inclusion journey."

Source : Equity Bulls

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