The proededs of this transaction have been implemented for infrastructure development | Photo credit: Lakshmiprasad S
Vivriti Capital, a lender of the companies in the Middle Market in India, has obtained a partial credit guarantee of guarantor in its newly issued non -convertible obligations of ₹ 200 million rupees that recently appeared in the EEB.
The transaction, one of the few bond transactions guaranteed by an institution of development finance in the high seas in India, is backed by a structured credit improvement mechanism, in which the maximum guarantee coverage of guarantor is initially 65 percent of the NCD.
Without provisional use, this progressive guarantee extends to 100 percent of the main slope by 27Th Month, ensuring the complete main coverage for the Bondwolters. NCDs are 6 years old.
The projects of this transaction have been deployed for the development of infrastructure, supporting Vivriti’s commitment to finance medium market companies and small companies involved in infrastructure and climate -centered initiatives.
Financial ecosystem
This guarantee aims to strengthen Vivriti’s position in the financial ecosystem of India by diversifying its financing base beyond traditional bank loans. The transaction has been backed by a Pidg Trust technical assistance subsidy.
“By taking advantage of an innovative mechanism for the improvement of structured credit, we have established a precedent for future market transactions. This issuance not only diversifies our sources of financing, but also reinforces our ability to support medium market companies and infrastructure projects,” said Parth Sanghani, Treasure Chief of the Vivriti Capital.
This is also the first transaction of the Garante capital market in India and serves as a pioneering step to mobilize funds from institutional investors, including insurance companies, pension funds and mutual funds, in the bond market.
Traditionally, regulatory standards have restricted investments in qualified bonds below AA, and this issuance establishes a precedent to take advantage of credit improvements to close the gap in infrastructure financing.
Posted on April 16, 2025