Three Indian banks and a private equity firm-led consortium invested a total of US$270 million in microfinance lender Spandana Sphoorty Financial Ltd., Mint reported April 5.
Spandana Sphoorty said it raised US$170 million from IndusInd Bank Ltd., YES BANK Ltd. and ICICI Bank Ltd. in the form of debt capital. In addition, a Kedaara Capital-led consortium, which includes Ontario Teachers' Pension Plan Board, will invest US$100 million into the microfinance company. Kedaara Capital will acquire a 55% stake in the lender with the investment.
Spandana Sphoorty expects the funding to facilitate its exit from the corporate debt restructuring cell, or CDR. It added that it has paid off its entire outstanding restructured loans. The company was placed under the CDR cell after the state of Andhra Pradesh passed tighter laws in 2010.
Padmaja Reddy, founder and managing director of Spandana Sphoorty, also suggested that the company may launch an IPO in the next 18 months.