India: MFI Spandana Sphoorty raises $270m funding

Micro finance institution (MFI) Spandana Sphoorty Financial Ltd has raised $270 million through a mix of equity and debt funding, according to a statement.

PE firm Kedaara Capital led consortium including Ontario Teachers’ Pension Plan has invested over $100 million for a stake while $170 million is raised from IndusInd Bank, Yes Bank and ICICI Bank in the form of debt.

According to a public notice last month, the microfinance lender was in talks with Kedaara Capital to sell more than 26 per cent in the company.

It will use the money to repay and restructure Spandana’s existing debt with 37 different lenders and exit the Indian corporate debt restructuring scheme.

Spandana, which had been referred to corporate debt restructuring (CDR) by its lenders in 2011 after the Andhra Pradesh microfinance crisis, is raising funds to clear its existing debts with 37 financial institutions which had previously gone bad.

The MFI operates through 540 branches in 13 states across the country and has over 2 million borrowers with a portfolio outstanding of Rs 1,325 crore.

In the microfinance space, Last week, IFC (International Finance Corporation), a member of the World Bank Group, committed to provide up to $20 million to RGVN (North East) Microfinance Ltd in the form of a senior debt investment.

Guwahati-headquartered RGVN is an RBI-registered NBFC which facilitates loans to health, education and livelihood sectors in the North Eastern region.

Shearman & Sterling advised Ontario Teachers’ Pension Plan Board (OTPP), alongside Kedaara Capital and Soros Fund Management LLC on its investment into Spandana Sphoorty.

Also Read:

India: IFC to provide up to $20m debt to RGVN Microfinance

India: Kedaara Capital in talks to pick stake in Spandana Sphoorty Financial

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.