MICROCAPITAL BRIEF: FMO Buys $30m in Bonds from Satin Creditcare, Supporting Microfinance Institution’s Expansion in Rural India

Indian microfinance institution (MFI) Satin Creditcare Network recently raised USD 30 million through a bond sale to Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a development bank controlled by the Dutch government, to expand the microlender’s outreach into new areas including rural eastern and northeastern Indian states.

Established in 1990, Satin is a Delhi-based lender to households as well as micro-, small and medium-sized enterprises serving approximately 3 million customers. As of December 2018, it reported total assets of INR 58.1 billion (USD 831 million) and a gross loan portfolio of INR 57 billion (USD 815 million). The institution does not accept deposits.

FMO, which was established in the Netherlands in 1970, is 49-percent owned by private-sector organizations. The bank’s vision is to help abolish extreme poverty, increase equality and support measures that reduce climate change. For 2017, FMO reports pre-tax earnings of EUR 292 million (USD 350 million) from operations in approximately 70 countries. As of the end of that year, the organization had total assets of EUR 8.3 billion (USD 10 billion) including EUR 3.3 billion (USD 4 billion) in investments outstanding to financial institutions.

By Michelle Fleming, Research Associate

Sources and Additional Research

Economic Times article
https://economictimes.indiatimes.com/markets/stocks/news/satin-raises-30-mn-in-bonds-from-netherlands-fmo/articleshow/67095898.cms

Satin Creditcare homepage
https://satincreditcare.com

Satin Creditcare financial information
https://www.satincreditcare.com/uploads/1478752776_q1_attachment_scnl_annual_report_2018.pdf

FMO homepage
https://www.fmo.nl

MICROCAPITAL BRIEF: Point-of-sale Service Provider Yoco of South Africa Raises $16m in Equity from Accion Frontier Inclusion Fund, FMO, Paratech
https://www.microcapital.org/microcapital-brief-point-of-sale-service-provider-yoco-of-south-africa-raises-16m-in-equity-from-accion-frontier-inclusion-fund-fmo-paratech/

MICROCAPITAL BRIEF: Asian Development Bank (ADB) Places $10m Equity Investment in Satin Creditcare Network to Support Microfinance for Women in Rural India
https://www.microcapital.org/microcapital-brief-asian-development-bank-adb-places-10m-equity-investment-satin-creditcare-network-support-microfinance-women-rural-india/

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