Vivriti Capital launches offshore credit-guaranteed NCDs

The proceeds from this transaction have been deployed towards infrastructure development
| Photo Credit:
lakshmiprasad S

Vivriti Capital, a lender to mid-market enterprises in India, has secured a partial credit guarantee from GuarantCo on its newly issued ₹200 crore non-convertible debentures that were recently listed on the BSE.

The transaction, one of the few guaranteed bond transactions by an offshore development finance institution in India, is backed by a structured credit enhancement mechanism, wherein GuarantCo’s maximum guarantee cover is initially 65 per cent of the principal value of the NCD.

With no interim utilisation, this guarantee progressively extends to 100 per cent of the outstanding principal by the 27^th month, ensuring complete principal coverage for the bondholders. The NCDs have a tenure of 6 years.

The proceeds from this transaction have been deployed towards infrastructure development, supporting Vivriti’s commitment to financing mid-market enterprises and small businesses engaged in infrastructure and climate-focused initiatives.

financial ecosystem

This guarantee aims to strengthen Vivriti’s position in India’s financial ecosystem by diversifying its funding base beyond traditional bank lending. The transaction has been supported by a Technical Assistance grant from the PIDG Trust.

“By leveraging an innovative structured credit enhancement mechanism, we have set a precedent for future market transactions. This issuance not only diversifies our funding sources but also reinforces our ability to support mid-market enterprises and infrastructure projects,” said Parth Sanghani, Chief Treasury Officer at Vivriti Capital.

This is also GuarantCo’s first capital market transaction in India and serves as a pioneering step towards mobilizing funds from institutional investors, including insurance companies, pension funds, and mutual funds, into the bond market.

Traditionally, regulatory norms have restricted investments in bonds rated below AA, and this issuance sets a precedent for leveraging credit enhancements to bridge the gap in infrastructure financing.

Published on April 16, 2025