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SKS Issues Commerical papers Worth 250 Million
Mar '2009
Breaks fresh ground yet again in MFI fund raising
Hyderabad, March 24, 2009: SKS Microfinance, India's largest and world's fastest growing microfinance institution, has - for the first time in microfinance sector - issued Commercial Papers worth Rs.250 m. The papers are rated a high PR1 by CARE. Announcing this landmark transaction, Mr. S. Dilli Raj, CFO of SKS Microfinance said, "SKS becomes the first MFI in the World to issue CPs and the same showcases SKS's ability to introduce mainstream financial products to the MFI world. As financially prudent as we are, the proceeds will be used to reduce our cost of borrowing and have a positive impact on the Asset Liability Management of the organisation." Yes Bank subscribed to the Paper and Mr Somak Ghosh , Group President, Corporate Finance and Development Banking, YES BANK, said, "MFIs typically have short-term liquidity requirements as the microfinance operations are cash intensive and loans are for shorter tenor . YES Bank's subscription of this First Ever Commercial Paper Issuance by an Indian MFI, is a first step to creating a vibrant market for accessing short term low cost funding by MFIs." "This is indicative of the 'thought leadership' role played by SKS. Innovative funding instruments like these will help MFIs broad base the sources basket and help them gain additional access to capital," commented Mr. Suresh Gurumani, CEO & MD of SKS Microfinance. SKS Microfinance currently has a member base of 4 million and has cumulatively disbursed loans worth Rs.6, 500 crore. It has 1373 branches across 18 Indian states.
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