Microfinance company Satin Creditcare Network has raised 15 million euros in debt from OeEB – Oesterreichische Entwicklungsbank AG – the Development Bank of Austria.
The external commercial borrowing with a tenure of five years is raised at a rate linked to Euribor and it comes around 11% approximately, a senior official with Satin said. This rate is euribor plus 260 basis points, to be precise.
The lender’s average cost of funds was a little under 11%.
The funds locally come a little cheaper nowadays than overseas funds yet the companies are going for ECB to diversify their funding sources.
The fund will be used to expand Satin’s operations and enhance micro-credit access for its customers.
“The fund will significantly enhance our expansion efforts and broaden microcredit access to underserved communities. We are determined to level-up and empower women with our outreach programmes and continue to fuel avenues that can make our country self-reliant,” Satin chairman HP Singh said. . “With Nagaland being added to our portfolio recently we see new opportunities amongst far Eastern states too,” he said.
The latest fundraise marked Satin’s third transaction with OeEB, following the successful collaboration in 2019 and 2021 for a total $20 million.
Satin earned a net profit of Rs 423 crore, representing a 60% rise. The lender said it disbursed over Rs 10,000 crore during the year, which is a record till date, backed by 630,000 addition of borrowers, taking the total count to 3.47 million.
