IDBI Capital, Northern Arc invest Rs 60 crore in Satin Finserv

Kolkata: IDBI Capital and Northern Arc Capital have together invested Rs 60 crore in Satin Finserv, the MSME-focused subsidiary of microfinance company Satin Creditcare Network, people aware said.

Both have invested Rs 30 crore each through the issuance of listed, secured, and rated non-convertible debentures, at a coupon of 10.95% a year, they said.

The proceeds will be deployed towards expanding the company’s core MSME lending operations along with its recently introduced green finance initiative.

Northern Arc and Satin did not comment on the matter till press time while IDBI Capital could not be contacted immediately.

ICRA rated the bonds "A- (stable)", reflecting the entity’s good credit profile. Satin Finserv is well capitalised with a CRAR of 36.83% and debt to equity ratio of 2.46 times as of June.

Satin Finserv is wholly owned by Satin Creditcare Network.