Money & Banking

Magma Fincrop raises Rs 350 crore via private placement of NCDs with FMO

Our Bureau Mumbai | Updated on December 13, 2019 Published on December 13, 2019

Magma Fincorp has raised Rs 350 crore by way of Non-Convertible Debentures (NCDs) from Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden NV (FMO), a Dutch Entrepreneurial Development Bank, to support the company’s on-going growth plans.

The NCDs issued on a private placement basis are unlisted, redeemable, senior secured and transferable, the asset finance company said in a regulatory filing. This investment by FMO is under Voluntary Retention Route (VRR) for investment in Indian debt by FPI (foreign portfolio investor).

As per the filing, the proceeds of the NCDs will be utilised for the company’s ongoing business operations, including expansion and growth of its micro and small and medium enterprise (MSME) loan portfolio.

Magma offers a bouquet of financial products including commercial finance, agri-finance, SME finance and mortgage finance. It also has a general insurance subsidiary.

Linda Broekhuizen, Chief Investment Officer FMO said, “Helping countries to meet the needs of the underbanked and underserved is an important part of FMO’s strategy....Magma Fincorp is specialised in financing solutions to the underbanked primarily in rural and semi-urban areas therefore supporting the SDG (sustainable development goals) 10, reduced inequalities.”

Published on December 13, 2019
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