|SKS ISSUES COMMERCIAL PAPERS WORTH 250 MILLION
Breaks fresh ground yet again in MFI fund raising
- 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 proceedswill 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.
About SKS Microfinance
SKS Microfinance is a non-banking finance company (NBFC) whose mission is to eradicate poverty by providing financial services to the poor. Established in 1998, SKS Microfinance is India's largest and one of the world's fastest growing microfinance organizations with an annual growth rate of 200 per cent. It currently serves 3.9 million clients across 60,000 villages and slums in 18 states and has disbursed Rs. 6,212Crore in loans with a 99 % repayment rate. SKS also provides life and health insurance to its clients.
SKS has received numerous awards including the Young Global Leaders by World Economic Forum, CGAP Pro-Poor Innovation Award, the ABN-AMRO/Planet Finance Process Excellence Award, Citibank Information Integrity Award, the Digital Partners SEL Award and the Grameen Foundation USA Excellence Award. Business Week has recently named SKS as one the Top 5 emerging and influential companies in the world. It was founded by Vikram Akula, who was named by TIME magazine as one of the 100 Most Influential People in the World (2006).