Spandana Sphoorty raises Rs 337.5 crore through CredAvenue

Hyderabad-based microfinance company to utilise the funds raised through market linked debenture to scale its business profitably

Hyderabad: CredAvenue has facilitated the largest ever market linked debenture (MLD) issuance in the microfinance sector in the country through its online bond platform Plutus. The Rs. 337.5 crore MLD issue from Spandana Sphoorty Financial Limited (SSFL) received strong interest and participation from HNI investors, family offices and corporate treasuries.

MLDs are a type of debt security that provides returns based on the performance of an underlying index/security. When the underlying security does well, the return on MLDs will be high and vice-versa.

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Commenting on the development, Padmaja Reddy, founder and MD of SSFL, said “It is good to see heightened interest from retail investors in both our company and the microfinance sector. Funds raised through this issuance will help us scale our business profitably at an accelerated pace.”

In a macro environment that has continued to remain volatile and challenging for more than a year now, CredAvenue provides an opportunity to retail investors to participate in index or market yield linked products with superior risk return characteristics.

“Through our fixed income (Plutus) platform we have combined our best-in-class product understanding and technology to broad-base and deepen Indian debt markets. Plutus platform today offers retail investors a unique opportunity to invest in various debt instruments catering to their lifecycle requirement,” said Sarath Bhaskaran, head, Outreach, Plutus.

Bhaskaran added, “One of the products on the platform- Market Linked Debentures (MLDs) has seen strong traction with retail investors. Our platform has cumulatively placed around Rs 2,500 crores of MLDs in less than nine months.”

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