GuarantCo provided a partial credit guarantee for a listed and rated Non-Convertible Debenture (NCD) bond issuance by Vivriti Capital, an impact focused non-bank financial institution in India. CRISIL, an S&P subsidiary, rated the credit enhanced bond at AA+(CE)/Stable.

The NCD issuance totalling INR 2 billion (c. USD 23.4 million) aims to expand Vivriti’s access to the capital markets and enable Vivriti to tap into a diversified pool of longer-term institutional debt investors.

This transaction will help Vivriti to primarily diversify its funding base from banks to institutional investors. Vivriti’s increasing asset base requires capital from varied sources to support its on-lending to a portfolio of under-served mid-market enterprises and small businesses engaged in infrastructure development, including climate-focused initiatives.

This is GuarantCo’s first capital market transaction in India and aims to be the catalyst for replicable transactions in the Indian market. This issuance is anticipated to be the first of many to enable the scaling and channelling of funds from multi-billion-dollar local insurance companies, pension funds and mutual funds into the debt capital bond market. Regulatory norms have typically restricted investments in bonds that are rated lower than AA.

Infrastructure development has been identified by the national government as a key enabler in helping India to become a USD 7 trillion economy by 2030, with infrastructure seen as a crucial cross-sector pillar to drive efficiency and ensure good governance. Investments in building and upgrading physical infrastructure remain pivotal to drive economic growth, alleviate poverty, manage costs and increase ease of doing business in the country.

Through this bond issuance, GuarantCo and Vivriti will be contributing towards multiple UN Sustainable Development Goals (SDGs) including SDG 8 -Decent Work and Economic Growth.