September 1, 2023
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CreditAccess Grameen NCD Tranche II 2023 issue Details
NCD Issue Opens on 24 August 2023
NCD Issue Closes on 01 September 2023
# NCD Guidance is given at the bottom of the post
About the Company:
CreditAccess Grameen is a leading Indian micro-finance institution headquartered in Bengaluru, focused on providing joint liability group based micro-loans primarily to women customers predominantly in rural areas in India. According to MFIN India, it is the largest NBFC-MFI in India in terms of gross loan portfolio as of March 2023. It offers a diverse suite of micro-loans that cater to critical needs of its customers throughout their life cycle and includes income generation, health care,
emergency, education, festival celebration, home improvement, water, and sanitation. It also offers non-credit solutions like insurance and Aadhar enabled cash withdrawals to its customers. It believes that its customer-centric business model, wide range of product offerings, as well as its well-designed product delivery and collection systems, have enabled it to achieve high customer retention rates and low credit costs.
CreditAccess Grameen focuses predominantly on customers in Rural areas in India, who largely lack access to the formal banking sector and present a latent opportunity for offering micro-loans. Its products are built on a deep understanding of the requirements of its customers (especially customers from rural areas) developed over years and the flexibility of its products (in terms
of ticket sizes, end-uses and repayment options) and the manner of their delivery, which it believes are key factors that differentiates it from its competitors and generates customer loyalty.
Its focus customer segment is women having an annual household income of up to Rs.300,000 as per the new microfinance regulations announced by RBI in March 2022. It provides microfinance loans primarily under the joint liability group (“JLG”) model. Further, it also provides individual retail finance loans to customers who fulfil certain eligibility criteria linked primarily to their credit history, income, and business position.
The company has followed a strategy of contiguous district-based expansion acrossregions. As of June 30, 2023, it has presence in 353 districts in the 14 states (Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, Odisha, Chhattisgarh, Goa, Bihar, Jharkhand, Gujarat, Rajasthan, Uttar Pradesh and West Bengal) and one union territory (Puducherry) in India through 1,826 branches and 17,391 employees, serving an active customer base of 44.2 lakhs, as of June 2023.
Get more details about the company @ https://www.creditaccessgrameen.in/
NCD Promoter: CreditAccess India N.V.
NCD Rating
The NCDs proposed to be issued under the Issue have been rated IND AA-/Stable for an amount of Rs 1500 Crores by India Ratings & Research Private Limited.
| CreditAccess Grameen Tranche II NCD 2023 Detail | |
| Issue Open | Aug 24, 2023 – Sep 6, 2023 |
| Security Name | CreditAccess Grameen Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 1,000.00 Crores |
| Issue Size (Shelf) | Rs 1,500.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | IND AA-/Stable |
| Tenor | 24, 33 and 60 months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 25% |
| Non-Institutional | 30% |
| HNI | 20% |
| Retail | 25% |
| CreditAccess Grameen Limited NCD Coupon Rates | ||||||||
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 |
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 33 Months | 33 Months | 50 Months | 50 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 9.10% | NA | 9.25% | NA | 9.40% | NA | 9.70% | NA |
| Effective Yield (% per Annum) | 9.48% | 9.48% | 9.64% | 9.64% | 9.81% | 9.81% | 10.13% | 10.13% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,198.82 | Rs 1,000.00 | Rs 1,288.12 | Rs 1,000.00 | Rs 1,477.11 | Rs 1,000.00 | Rs 1,621.19 |
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
1)For onward lending, financing and repayment of interest and principal of existing borrowings of the Company.
2) General Corporate Purposes.
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| Address of the Company CreditAccess Grameen Limited New No. 49 (Old No. 725), 46th Cross, 8th Block, Jayanagar, Rajalakshmi Kalyana Mantap Bengaluru 560 071, Karnataka NCD Lead Managers A.K. Capital Services Limited NCD Registrar Kfin Technologies Limited |
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CreditAccess Grameen NCD Tranche II 2023
Red Hearing Prospectus
Analysis & Guidance:
In the highly competitive finance business, the company has achieved very strong AUM growth, impressive net interest margin and at the same time, very very low net NPA ratio during last 2 financial years. In India, Microfinance has very strong growth potential. The company has offered reasonably high and attractive coupen rates.
Retail and HNI investors may apply.
| CreditAccess Grameen NCD Tranche II 2023 | |
| Subscription Status | |
| On 01.09.2023 | @ 5.00 pm |
| Category | Subscription (Times) |
| Institutional | 2.50 |
| Non-Institutional | 2.66 |
| HNI | 2.20 |
| Retail | 2.63 |
| Total | 2.53 |
