Micro Units Development and Refinance Agency (MUDRA), an Indian non-bank finance firm launched by Prime Minister Narendra Modi’s government in 2015, aims to collect up to 50 billion rupees ($563.22 million) via bonds. This move will broaden its funding options. Two insiders shared this news on Thursday.
As a full subsidiary of the Small Industries Development Bank of India (SIDBI), MUDRA plans to release its initial 20 billion rupees in bonds by the end of this quarter. The next batch should come in the final quarter of the fiscal year. One source confirmed these details.
MUDRA might choose bond terms from three to seven years to match its loan assets. The exact setup will depend on what investors want, closer to launch. A second source explained this.
The firm did not reply to Reuters’ questions. It earned AAA ratings from Care and Icra for the bonds.
MUDRA gets help from SIDBI in daily operations and leadership. SIDBI also holds seats on its board. Care noted this in its report.
The ratings show solid support from India’s government and the Reserve Bank of India. This comes via budget funds and policy steps. Care pointed this out.
These bonds will help MUDRA spread out its money sources. It now relies on budget aid and bank loans. This will make refinancing steadier for banks that lend to small borrowers. The insiders noted.
MUDRA owes 79.50 billion rupees in loans from SIDBI and banks like Bank of India and IDBI Bank. Icra reports this total.
SIDBI has a good history with bonds. It has almost 1 trillion rupees in active bonds. Icra data backs this.