11 Nov 2022

Credit Access Grameen NCD Issue Analysis

The current issue of NCDs by Credit Access Grameen offers yield that ranges from 9.83% to 10.46% with 2 to 5 years maturity.

author dp
Team INRBonds
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Credit Access Grameen Limited is a leading Indian micro-finance institution in India. This company is the largest NBFC- MFI in India in terms of the gross loan portfolio as of March 2022. CA Grameen�s promoter is Credit Access India N.V., a multinational company who operates in the area of in micro and small enterprise financing backed by institutional investors.

As of September 30, 2022, the company have a presence in 333 districts in 14 states (Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, Odisha, Chhattisgarh, Goa, Bihar, Jharkhand, Gujarat, Rajasthan, Uttar Pradesh and West Bengal) and one union territory (Puducherry) in India through 1,684 branches and 16,018 employees, serving active consolidated customer base 132 of 38.0 lakhs, as of September 30, 2022.

Credit Access Grameen Ltd upcoming debt issue details

Issue Open

Nov 14, 2022 - Dec 2, 2022

 

Security Type

Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)

 

Issue Size

Rs 5 billion

 

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 by India Ratings & Research Private Limited

 

 

Series 1

Series 2

Series 3

Series 4

Series 5

Series 6

Frequency of Interest Payment

Monthly

Cumulative

Monthly

Cumulative

Monthly

Cumulative

Face Value

Rs 1000

Nature

Secured

Tenor

24 months

24 months

36 months

36 months

60 months

60 months

Coupon Rate (Retail)

9.45%

NA

9.60%

NA

10.00%

NA

Effective Yield (% per Annum)

9.83%

9.83%

10.02%

10.02%

10.46%

10.46%

Amount on Maturity

Rs 1,000

Rs 1,206.57

Rs 1,000

Rs 1,332.07

Rs 1,000

Rs 1,644.91

Credit Access Grameen Financial Performances

Parameters (Rs billion)

FY21

FY22

H1FY23

�Income Operation

20.28

20.89

12.92

PAT

1.42

3.82

2.91

Net Worth

35.89

39.79

42.77

GNPA

4.39%

3.16%

1.73%

NNPA

1.40%

0.95%

0.47%

CRAR

31.75%

25.54%

28.96%

Total debt to asset

69.16%

70.87%

68.29%

Gearing

 

2.7

2.3

Credit Positive-

  Leading market player

  Adequate Capitalization

  Better Asset Quality

Credit Negative-

  Risk of microfinance sector

  Geographical concentration of area of operation

  Policy risk