CreditAccess Grameen Limited, headquartered in Bengaluru, is a leading micro-finance institution in India. It holds a prominent position as India’s largest NBFC-MFI in terms of gross loan portfolio as of March 2023, according to MFIN India’s reports.
The company’s remarkable success is founded on its unwavering commitment to customers, a diverse range of financial products, and a highly efficient system for delivering and collecting payments. This integrated approach has resulted in impressive customer retention rates and minimal credit losses.
Central to the operations of CreditAccess Grameen Limited is its dedication to serving the financial needs of individuals residing in the rural corners of India. These areas often lack attention from traditional banking establishments, offering a significant opportunity to provide micro-loans and financial support.
Up until June 30, 2023, the company has effectively expanded its reach to cover 353 districts across 14 states: Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, Odisha, Chhattisgarh, Goa, Bihar, Jharkhand, Gujarat, Rajasthan, Uttar Pradesh, and West Bengal. Additionally, it operates in the union territory of Puducherry. This extensive network encompasses 1,826 branches and is powered by a committed workforce of 17,391 employees. Noteworthy is the fact that the company serves a consolidated active customer base of 44.2 lakhs, as of June 30, 2023.
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 |
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.
Company Promoters
The company’s promoter is CreditAccess India N.V.
Company Financials
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 15,155.12 | 17,481.95 | 21,858.10 |
| Revenue | 2,466.07 | 2,750.13 | 3,550.79 |
| Profit After Tax | 131.40 | 353.07 | 826.06 |
Objects of the Issue
The following are the details of the objects of the Tranche II Issue and the amount proposed to be financed from Net Proceeds:
- For onward lending, financing and repayment of interest and principal of existing borrowings of the Company.
- General Corporate Purposes.
In conclusion
With its customer-centric approach and a wide range of financial products, CreditAccess Grameen Limited has established itself as India’s largest NBFC-MFI. The company’s remarkable success in reaching underserved rural areas is exemplified by its extensive presence across 14 states, solidifying its impactful presence. An illustration of strategic growth is found in the CreditAccess Grameen Tranche II NCD 2023 issuance, which boasts an IND AA-/Stable rating. This move not only signifies the company’s financial progress but also underscores its adept management.
The continuous growth of assets, revenue, and profits serves as a testament to CreditAccess Grameen Limited’s robust financial performance. Beyond the numbers, this achievement reaffirms the company’s dedication to effective management practices. More than just financial success, the company remains steadfast in its commitment to empowerment and inclusivity. By actively driving the cause of Indian microfinance, CreditAccess Grameen Limited emerges as a dynamic force propelling positive change.
Research data source by: https://www.chittorgarh.com/bond/creditaccess-grameen-tranche-ii-ncd-2023/255/
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