The non-banking finance company Capital Trust Ltd has raised Rs 150 crore through non-convertible debentures (NCDs) from the private equity fund Baring Private Equity Asia, according to a statement. Of the total Rs 150 crore, Capital First has already received the first tranche of Rs 75 crore.
The issue is in the form of rated, listed, secured, redeemable, taxable, non-convertible debentures to BPEA India Credit Investments Trust II, which is a part of Baring Equity.
Capital Trust plans to use the fund to fuel its growth and expansion plans and cater to unbanked population, thus encouraging self-sufficiency and entrepreneurship in the country, it said in the statement.
“The funds received will fuel our growth and expansion and enable us provide easy access to other financial instruments for the unbanked population,” said Capital Trust’s managing director Yogen Khosla.
“What differentiates us is our focus on the Missing Middle – the economic segment that is excluded from the formal banking system. Our diverse product offerings in the MSME market help us acquire customers that have outgrown the micro-finance ticket size but remain un-served by large NBFC’s and banks,” he added.
Capital Trust provides enterprise and micro credit loans to MSMEs through its 250 branches in 10 states in north and east India. It offers door-step financial loans ranging from Rs 1 Lakh-Rs 10 Lakhs to MSMEs at affordable costs.
Baring Private Equity Asia is one of the largest and most established independent alternative asset management firms in Asia. It entered into the credit business in India in 2016 with the acquisition of Religare Global Asset Management.
Last month, Mint reported that Baring Private Equity Asia has shown interest in the upcoming auction for a controlling stake in PNB Housing Finance Ltd.