Satin Creditcare Network (Satin), an Indian microfinance institution (MFI), recently announced that it has raised INR 284 million (USD 4.7 million) in equity from the Norwegian Microfinance Initiative (NMI), a Norway-based public-private partnership that invests in and offers technical support to MFIs. Satin intends to use the new capital to finance the expansion of its branch network into the northern part of India and to develop new products for its customers in the health and sanitation sectors. Unitus Capital, an India-based financial services firm that specializes in capital market services for microfinance institutions (MFIs), acted as financial adviser to Satin on the transaction. The financial terms of the transaction have not been disclosed.
As of December 31, 2012, Satin reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 137 million, a gross loan portfolio of USD 107 million, return on assets of 0.86 percent, return on equity of 4.82 percent and 485,000 active borrowers. NMI makes its investments through three investment funds: NMI Global Fund, which supports MFIs that have operations deemed “large and sustainable;” NMI Frontier Fund, which supports emerging MFIs in Sub-Saharan Africa and South Asia; and NMI Fund III, which supports MFIs considered to be financially sustainable or are likely to become financially sustainable in the near future. As of 2012, fund capitalization was NOK 360 million (USD 60 million) for the Global Fund and NOK 240 million (USD 40 million) for the Frontier Fund. NMI Fund III was created in June 2013 with investor commitments of NOK 182 million (USD 30.5 million).
By A’kos Szebeni, Research Associate
About Satin Creditcare
Established in 1990, Satin Creditcare Network Limited is an Indian microfinance institution based in Delhi. As of December 31, 2012, Satin reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 137 million, a gross loan portfolio of USD 107 million, return on assets (ROA) of 0.86 percent, return on equity (ROE) of 4.82 percent and 485,000 active borrowers. The MFI does not accept deposits.
About the Norwegian Microfinance Initiative
The Norwegian Microfinance Initiative (NMI), a registered private limited liability company, is a partnership between the Norwegian public and private sectorsthat invests in and provides technical support for microfinance institutions (MFIs) in developing countries. The mission of NMI is “to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.” As of 2014, NMI makes its investments through three investment funds: NMI Global Fund, which was established in 2008 and supports MFIs that have operations deemed “large and sustainable” with assets of NOK 360 million (USD 60 million); NMI Frontier Fund, which was established in 2008 and supports emerging MFIs in Sub-Saharan Africa and South Asia with assets of NOK 240 million (USD 40 million); and NMI Fund III, which supports MFIs considered to be financially sustainable or are likely to become financially sustainable in the near future. NMI Fund III was created in June 2013 with investor commitments of NOK 182 million (USD 30.5 million).
Sources and Additional Resources:
Norwegian Microfinance Initiative Press Release, “NMI Fund III KS invests USD 4.7 million through a share issue in Satin Creditcare Network Limited,” http://nmimicro.no/sites/nmimicro.no/files/Satin%20CreditCare%20Press%20Release%20-%20April%202014.pdf
MicroCapital, September 18, 2013, “Standard Chartered Bank (SCB) Loans $11m to India’s Equitas Microfinance, Satin Credit Care,” https://www.microcapital.org/microcapital-brief-standard-chartered-bank-scb-loans-11m-equitas-microfinance-satin-credit-care/
MicroCapital, April 19, 2013, “Utkarsh Raises $3.7m in Equity from Aavishkaar Goodwell, International Finance Corporation, Norwegian Microfinance Initiative,” https://www.microcapital.org/microcapital-brief-utkarsh-raises-3-7m-in-equity-from-aavishkaar-goodwell-international-finance-corporation-norwegian-microfinance-initiative/
MicroCapital, October 3, 2011, “Indian Microfinance Institution Utkarsh Raises $5m in Equity from Norwegian Microfinance Initiative, Aavishkaar Goodwell, International Finance Corporation,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-utkarsh-raises-5m-in-equity-from-norwegian-microfinance-initiative-aavishkaar-goodwell-international-financial-corporation/
MicroCapital, August 9, 2011, “Indian Microfinance Institution Satin Creditcare Reports $22m in Capital Raises, Securitizations; Upgraded by CARE Ratings to ‘MFI 2’,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-satin-creditcare-reports-22m-in-capital-raises-securitizations-upgraded-by-care-ratings-to-%e2%80%9cmfi-2%e2%80%9d/
MicroCapital, April 10, 2008, “Microfinance Venture Capital Fund Lok Capital to Invest $1.25m in India’s Satin Creditcare, With More to Come From Journalist Swaminathan Aiyar,” https://www.microcapital.org/press-release-microfinance-venture-capital-fund-lok-capital-to-invest-125m-in-indias-satin-creditcare-with-more-to-come-from-journalist-swaminathan-aiyar/
MicroCapital Universe Profile: Satin Creditcare Network Limited https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Satin+Creditcare+Network+Ltd
MicroCapital Universe Profile: Norwegian Microfinance Initiative (NMI) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Microfinance+Initiative+%28NMI%29
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