GuarantCo closes first capital market transaction in India, a partially guaranteed INR 2 billion listed and rated bond issued by Vivriti Capital

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a partial credit guarantee for a listed and rated INR 2 billion 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)^[1] 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. The transaction has also been supported by a Technical Assistance grant from PIDG.

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.

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.

Vivriti is an existing partner of GuarantCo following the issuance of a partially guaranteed loan in 2023. The loan transaction focused on supporting Vivriti’s work within the infrastructure value chain of the e-mobility sector.

Chinmay Naralkar, Deputy CEO, GuarantCo:

“I’d like to congratulate Vivriti and its team for issuing this bond despite challenging market conditions. This is our second transaction together and we are delighted to extend our partnership, this time with an innovative credit solution that we aim to replicate in India and to tap into the vast pool of institutional debt investors in the country.

“This partially guaranteed bond leverages the guarantee to ensure the bond achieves a rating uplift to AA+ thereby “crowding-in” private sector institutional investors, which helps diversify funding sources for Vivriti. I hope that this will be first of many such transactions for India, where GuarantCo can play its catalytic role to mobilise capital for infrastructure development from non-conventional funding sources in the country.”

Smitha Jain Arora, Head – Sustainability and Impact at Vivriti Capital, said:

“This transaction is a testament to the power of collaboration in driving meaningful change. Our partnership with GuarantCo goes beyond capital—it reflects a shared vision to enable inclusive growth by channelling institutional funds toward the underserved mid-market and last-mile enterprises that are critical to India’s infrastructure and climate ambitions. Together, we are building innovative, replicable models that bridge capital gaps and bring transformative impact where it matters most—on the ground, in communities, and across the real economy.”

^[1] USD/INR FX rate as of 24^th March applied: 1 USD: INR 85.59