Satin Creditcare Network Limited (Satin), a microfinance institution (MFI) headquartered in Delhi, recently announced that it received an upgraded credit rating from India-based CARE Ratings following a fundraising streak totaling INR 1 billion (USD 22.3 million). Based on CARE Rating’s review of Satin’s performance for financial year 2010 – 2011, Satin’s organizational rating was upgraded to “MFI 2” and the rating of its non-convertible debentures was maintained at “CARE BBB-”.
The series of transactions involving Satin includes: an equity investment of INR 400 million (USD 9 million) from US-based ShoreCap II Limited and Danish Microfinance Partners K/S in December 2010 and February 2011; secured non-convertible debentures of INR 120 million (USD 2.7 million) sold in March 2011 to DWM (Cyprus) Limited, a member of the US-based Developing World Markets (DWM) group of companies; and securitizations totaling INR 480 million (USD 10.6 million) sold to Indian investors Reliance Capital, Ratnakar Bank and Axis Bank between March 2011 and June 2011. India’s Unitus Capital acted as sole financial advisor for the equity raise, and India-based non-banking finance company IFMR Capital acted as financial advisor for the securitizations.
Satin’s repayment rates reportedly remain at an incredible 99 percent, having been unaffected by the industry downturn in the Indian state of Andhra Pradesh. As of June 30, 2011, Satin reported a portfolio of INR 2.12 billion (USD 47 million) outstanding to approximately 235,000 active borrowers in eight states of India.
By Carol Kim, Research Associate
About Satin Creditcare Network Limited: Established in 1990, Satin Creditcare Network Limited is an Indian microfinance institution based in Delhi. As of June 30, 2011, Satin reported a portfolio of INR 2.12 billion (USD 47 million) outstanding to approximately 235,000 active borrowers in eight states of India.
About ShoreCap II Fund (SCII): Shorecap II is a successor to US-based ShoreCap International (SCI), a microfinance investment vehicle (MIV) that was launched in 2003. SCII was established to make investments in microfinance institutions (MFIs), small business banks (SBBs) and nonbank financial institutions (NBFIs) that provide financial services to micro- and small entrepreneurs in Africa and Asia. The fund’s mission is to contribute to the alleviation of poverty by strengthening financial institutions and increasing access to financial services. Financial information is not available.
About Unitus Capital: An affiliate of Unitus Labs, a nonprofit with operations in India and the US, Unitus Capital is a financial advisory firm that specializes in arranging capital for microfinance institutions (MFIs) and other enterprises that aim to benefit the poor. Based in Bangalore, India, Unitus Capital offers financial advisory and capital markets services to clients in Asia. Between 2004 and 2010, Unitus Capital reports having arranged USD 25 million in debt capital for microfinance institutions (MFIs).
About IFMR Capital: IFMR Capital, previously known as IFMR Trust Guarantee Company, is an affiliate of Indian nonprofit Institute for Financial Management and Research (IFMR). It aims to provide access to capital for institutions in sectors such as financial services, municipalities, rural small and medium-sized enterprises, rural infrastructure and agriculture.
Sources and Additional Resources:
Unitus Capital Press Release: “Satin receives credit rating upgrades following their Rs. 100 crore equity and debt capital raise”, August 2011, http://unituscapital.com/news-information/press-releases/satin-receives-credit-rating-upgrades-following-their-rs.-100-crore-equity-and-debt-capital-raise-august-11?searchterm=satin
MicroCapital.org: “MICROCAPITAL BRIEF: Costs Rise for Indian Microfinance Institutions (MFIs) Looking to Securitize Loan Portfolios From 10% to Over 12%”, June 3, 2011, https://www.microcapital.org/microcapital-brief-costs-rise-for-indian-microfinance-institutions-mfis-looking-to-securitize-loan-portfolios-from-10-to-over-12/
MicroCapital.org: “MICROCAPITAL BRIEF: LeapFrog Partners With Unitus Capital Looking to Invest $40m to Increase Microinsurance Penetration in India”, June 3, 2011, https://www.microcapital.org/microcapital-brief-leapfrog-partners-with-unitus-capital-looking-to-invest-40m-to-increase-microinsurance-penetration-in-india/
MicroCapital.org: “PRESS RELEASE: Microfinance Venture Capital Fund Lok Capital to Invest $1.25m in India’s Satin Creditcare, With More to Come From Journalist Swaminathan Aiyar”, April 10, 2008, 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’s Universe Profile: Satin Creditcare Network Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Satin+Creditcare+Network+Ltd
MicroCapital’s Universe Profile: ShoreCap II fund (SCII), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ShoreCap+II+Fund+%28SCII%29
MicroCapital’s Universe Profile: Unitus Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unitus+Capital
MicroCapital’s Universe Profile: IFMR Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Abler Nordic Sells Equity Stake in Satin Creditcare, Provider of Microfinance to Low-income Women in India
- MICROCAPITAL BRIEF: SBFC Raises $18m from Amansa for On-lending to Small Businesses, Households in India
- MICROCAPITAL BRIEF: Enabling Qapital Loans $10m to AccessBank for Microfinance, SME Lending in Azerbaijan
- MICROFINANCE PAPER WRAP-UP: “Child Labor, Rainfall Shocks and Financial Inclusion: Evidence from Rural Households,” by Carolina Bernal and Razvan Vlaicu, Published by IDB
- MICROCAPITAL BRIEF: Abler Nordic Leads $10m Equity, Debt Investment Round for Ergos, Agtech Offering Crop Storage in India
