New Delhi, Feb 16 (PTI) Microfinance lender CreditAccess Grameen on Wednesday said its board has approved a proposal to raise up to Rs 5,000 crore through debt securities and an additional USD 7.4 million (about Rs 55.5 crore) by issuing masala bonds.

Its board of directors at its meeting on Wednesday approved the proposal to raise funds up to Rs 5,000 crore, the company said in a regulatory filing.

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CreditAccess Grameen said this amount is proposed to be raised by the issuance of securities, including bonds, debentures, non-convertible debentures (NCDs) and commercial papers of any other marketable instruments in one or more tranches on private placement or any other mode.

Besides, the company's board also gave its approval for the issuance of secured, rupee denominated, non-convertible bonds aggregating up to an amount equal to the Indian rupee equivalent of USD 7,400,000 to WaterCredit Investment Fund 3, LP. These are rupee-denominated bonds, popularly known as masala bonds.

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Masala bonds are rupee-denominated bonds issued outside India.

The company said the masala bonds are proposed to be allotted on or before March 4, 2022. The tenure of these bonds is 36 months and the coupon is 9.7 per cent per annum.

Shares of CreditAccess Grameen on Wednesday closed at Rs 727.65 apiece on the BSE, up by 3.29 per cent from the previous close. HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)