Small Industries Development Bank of India (SIDBI) has participated as an anchor investor in Promising Lenders Fund (PLF) managed by Vivriti Asset Management with an aggregate target corpus of ₹700 crore in two tranches.
The fund was conceptualised by SIDBI and Vivriti to provide debt capital to microenterprises and building bond markets for issuers rated BBB and lower category.
The Promising Lenders Fund is envisaged to benefit over 8,000 microenterprises and 80,000 women entrepreneurs.
The first phase of the fund (PLF-I) with a fund size ₹300 crore went live in March 2022 and was fully invested by October 2022. The fund has made 18 investments in 16 microfinance institutions/NBFCs and fintechs rated BBB and lower categories. “The fund has returned over 25 per cent of capital as of June 2023 to contributors,” it added.
The second phase of the fund (PLF-II) with a target fund size of ₹400 crore went live in March 2023 and is expected to announce a final close by December 2023. The fund is expected to make 20–25 investments in MFIs/NBFCs and fintechs rated in below BBB or lower category.
“The initiative benefits presently lower rated microfinance institutions/NBFCs and fintechs and provides them opportunities to tap debt funds under alternative investment fund (AIF) route,” S Ramann, CMD, SIDBI said in a statement.