Bengaluru-based CreditAccess Grameen has announced that its redeemable Non-Convertible Debentures (NCD) tranche II will open for subscription on Thursday, August 24. The NCDs have a coupon rate of up to 9.70% per annum (p.a.) with an effective yield of up to 10.13% p.a., according to the company’s filing to the exchanges. The issue will end on September 6, 2023.

The base size of the NCD issue is Rs 400 crore with an option to retain oversubscription up to Rs 600 crore, aggregating up to Rs 1,000 crore. The face value of the NCD is Rs 1,000 each, and the issue type is secured, rated, listed, and redeemable, as mentioned in the filing by the NBFC.

The NCD issue will be listed on both BSE and NSE and has a rating of IND AA-/Stable. Last year, the company successfully raised Rs 500 crore from the November 2022 tranche I, which was subscribed 3.03 times of the base size issue. The market capitalisation of CreditAccess Grameen is currently over Rs. 21,500 crore.

According to the exchange filing, the company plans to launch seven series with different tenures: 24 months for Series I & II, 33 months for Series III & IV, 50 months for Series V & VI, and 60 months for Series VI & VII.

CreditAccess Grameen shares ended with nearly 3% declines at Rs 1,365.55 on the NSE on Friday.

India’s largest NBFC-MFI, CreditAccess Grameen, reported a 2.5-fold year-on-year rise in net profit at Rs 349 crore for the June quarter. This growth is attributed to healthy business expansion and improvement in credit quality. The net profit in the year-ago period was Rs 139 crore. The net interest margin for the quarter improved to 13% from 11.1% in the previous year, and net interest income rose by 65.4% YoY at Rs 763 crore.

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