Government-owned Small Industries Development Bank of India (SIDBI) will raise ₹300 crore through bonds over the next few months from a clutch of investors, including Tata group companies such as Tata Chemicals, Voltas, Titan and Trent.
Wealth managers such as Centrum group, ASK Wealth Advisors, Ambit Capital and Aditya Birla Finance have reached out to high networth individuals and impact investors to raise funds. Private equity fund KKR has also evinced interest to subscribe the bonds.
The World Bank group, which is facilitating the fund-raising, said the money would be extended to micro finance institutions, which, in turn, would be disbursed to women entrepreneurs.
The bonds will be unsecured and unlisted with a fixed coupon rate of 3% and with a tenure of five years.
At a press conference, SIDBI chairman and managing director Mohammad Mustafa said that the actual lending rate for the borrower would not be more than 13%. These bonds would enable woman entrepreneurs in sectors such as agriculture, food processing, services and manufacturing to borrow ₹1lakh -₹1.5 lakh.
