MicroVest invests $4 million in Grameen Koota’s NCDs

Microfinance Monitor, Jan. 22, 2010: Grameen Financial Services Private Limited (popularly known as Grameen Koota) has raised INR 20 crore (approximately $4.27 Million) of debt capital through an issuance of secured, redeemable, non-convertible debentures (NCDs) to MicroVest I, LP (MV I), a private equity fund formed under US Laws and registered as a Foreign Institutional Investor (FII) (sub-account) with the SEBI. With Unitus Capital acting as the sole financial advisor, the MV I – Grameen Koota deal marks a FII-registered microfinance investment vehicle (MIV) directly subscribing, for the first time, to a primary NCD issuance by an Indian MFI.
Mr. Suresh Krishna, Managing Director, Grameen Koota, remarked “This transaction is a great milestone for Grameen Koota and is very critical from the perspective of diversified funding. We are proud of this landmark transaction.”
“MicroVest is excited to contribute to Grameen Koota’s growth and development,” said Gil Crawford, CEO of MicroVest Capital Management, LLC. “Grameen Koota is a sophisticated and well-respected MFI. Not only is this deal an excellent opportunity for MV I to enter into a dynamic microfinance market with tremendous latent demand, it also advances an industry-wide vision of comprehensive, commercial, financial inclusion throughout India. MicroVest is always looking to capture innovative market opportunities and is pleased to bring this milestone investment to its MV I portfolio.”
“Diversification of funding sources is very important to Indian MFIs. Grameen Koota and MicroVest have entered into a landmark transaction allowing an Indian MFI for the first time to directly raise funds by issuing NCDs through the FII route. Unitus Capital is proud to work with these groundbreaking market leaders in this historic transaction,” states Eric Savage, Managing Director of Unitus Capital.
Grameen Koota said it has listed the NCDs in the Bombay Stock Exchange.