sidbi: SIDBI & Vivriti launch Rs 700 cr AIF fund for micro-enterprises with BBB and lower ratings

Small and Medium Enterprises (MSMEs), SIDBI has participated as an anchor investor in Promising Lenders Fund (PLF) managed by Vivriti Asset Administration (VAM), with an combination goal corpus of Rs 700 crores in two phases.

The fund was co-conceptualised by SIDBI and Vivriti with twin aims of offering mandatory debt capital to microenterprises and constructing bond markets for issuers rated BBB and decrease class. The fund is envisaged to profit over 8,000 microenterprises and 80,000 girls entrepreneurs.

The primary section of the fund, PLF-I, with a fund dimension of Rs 300 crore, commenced operations in March 2022 and was absolutely invested by October 2022. Throughout this section, the fund made 18 investments in 16 MFIs/NBFCs and Fintechs rated BBB and decrease class. It offered essential capital to eight,500 microenterprises and supported over 43,000 girls entrepreneurs. As of June 2023, the fund has already returned roughly 25% of the capital to its contributors.

The second section, PLF-II, with a goal fund dimension of INR 400 crore, started its operations in March 2023 and is anticipated to finalize its closing by December 2023. Throughout this section, the fund goals to make 20 – 25 investments in MFIs/NBFCs and Fintechs rated under BBB or within the decrease class. This may allow the fund to increase monetary assist to an estimated 4,000 microenterprises and empower 40,000 girls entrepreneurs.

“The initiative advantages presently decrease rated MFIs/ NBFCs and Fintechs and supplies them alternatives to faucet debt funds below AIF route,” stated S Ramann, Chairman and Managing Director at SIDBI.

“As an asset administration agency, we consider that bringing extra enterprises to the fore supplies capital markets – home and international – a possibility to diversify their portfolios, with an impactful but commercially rewarding funding,” stated Vineet Sukumar, CEO, Vivriti Asset Administration.