SHARE Microfin has raised Rs 100 Cr by issuing 8-year redeemable Non-Convertible Debentures on a private placement basis to SIDBI. The issue has been graded as LBBB by ICRA.

The issue consisted of 1,000 redeemable, transferable, unsecured, NCDs of Rs 10 lakh each.

The funds qualify as Tier II capital and will inprove the CAR and the Gearing ratios of the company.

The Hyderabad based MFI provides small loans mainly to women in rural India. It started its operations in 1989 and was the first Indian MFI to obtain a NBFC licence.

It operates through 933 branches in 18 states and has portfolio of more than 2.25 mn clients. It has made a total disbursement of Rs 5314 cr.

In Mar'10, SBI sanctioned Rs 200 Cr term loan to Share Mircofin. SBI also offered to provide integrated cash management services to share.

Earlier in Oct’09, Share Microfin raised Rs 500 Cr debt from different banks. It is also planning to sell of its portfolio under the off-balance sheet structures such as securtisation and portfolio buyouts to different banks and financial institutions to raise more funds.

It has already initiated discussions with PNB, ICICI, Yes Bank, ING Vysya Bank and DCB regarding the same.

It has also raised $27 Mn funding from Aavishkaar Goodwell and Legatum Ventures.

Microfinance sector has seen a lot of fund raising activity in the recent past. Equitas MFI and Bhartiya Samruddhi Finance raised PE funding from CLSA Partners and Matrix respectively, in the first week of April.

Hyderabad based - Asmitha Microfinance is also looking to raise about Rs 1,500 Cr debt and Rs 75 Cr of equity.

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