Jain Irrigation Systems-promoted Sustainable Agro-commercial Finance Ltd (SAFL), a retail agriculture finance focused non-banking financial company (NBFC), has raised ₹112 crore to expand its agriculture lending business.

The NBFC raised long-term non-convertible, subordinate bonds in the form of NCDs of ₹70 crore from private equity player Mandala Capital AG (Mandala). These NCDs are structured as Tier-II capital for the company. In addition, SAFL has successfully issued 2.40 crore equity shares of ₹10 each aggregating ₹24 crore with a share premium totalling ₹18 crore.

After the fund raising, the total capital stands at ₹208 crore.

At present, Jain Irrigation controls 49 per cent stake in SAFL, the promoters Jain family own about 21 per cent in their individual capacity and Mandala, a fund manager specialising exclusively in investing for the long term in India's fast-evolving food and agribusiness sector, holds 20 per cent stake.

In a span of two years, the total loan outstanding stands at ₹160 crore as on March 31, 2015. “We aim to target our loan book at ₹350 crore by the end of this fiscal year (March-end FY16) and ₹1,500 crore in five years...Our average ticket size currently is at ₹1 lakh,” said Arvind Sonmale, Managing Director and CEO, SAFL.

SAFL will deploy the capital to broaden its reach in the rural and semi urban areas in Maharashtra, Karnataka and Telangana initially, followed by expansion in Madhya Pradesh and Gujarat. SAFL finances micro irrigation systems (MIS) like drip irrigation and sprinkler irrigation, agri projects, lift irrigation schemes, small business, small farm equipment, solar pumps and appliances.

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