creditaccess grameen: CreditAccess Grameen to issue retail bonds to raise Rs 500 crore

Kolkata: will be looking to raise up to Rs 500 crore in its maiden retail bond issue which will be open for subscription on November 14.

This is the first tranche of the lender’s Rs 1500-crore bond raising plan

The lender, India’s largest NBFC-MFI, will offer interest rates ranging from 9.45-10% to the investors. The coupon would be 9.45% per annum for the 24 months bucket, 9.60% for 36 months and 10% for 60 months buckets, a person aware of the matter said.

The bonds, in nature of non-convertible debentures, would help the Bangalore-based micro lender diversify its funding source and elongate its liability profile.

Bank loans account for about 60-65% of its total liability. The company is looking to reduce the weightage on bank loans to about 45% in the next two-three years.

The lender’s weighted average cost of borrowing was 9.1% at the end of September, 20 basis points lower than what it was a year back. The marginal cost of borrowing for the September quarter was, however, 20 bps higher at 8.8%.

The capital will be used to grow advances. The lender is targeting 24-25% year-on-year growth in advances in FY23 over a Rs 16,599 crore portfolio seen at the end of March this year.