‘Pooled bond’ brings foreign investor to Indian NBFCs

rupees 230-150x
By Addison Gong
15 Aug 2019

Spanish impact fund Magallanes Impacto and India’s Northern Arc Capital’s joint investment in a Rp1.06bn ($15m) ‘pooled bond’ transaction highlighted foreign investors’ interests in India’s non-banking financial companies (NBFCs), as cash-strapped lenders look for alternative sources of funding. Addison Gong reports.

The transaction consists of three-year non-convertible debentures (NCDs) issued by four NBFCs: ASA International India Microfinance, Aye Finance Private, Kanakadurga Finance, and Thirumeni Finance Private (also known as Varthana). They each pay different funding costs and have separate ratings. But they also benefit from a shared guarantee from ...

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