Thiruvananthapuram, Mar 22 (KNN) The Kerala Financial Corporation (KFC) has successfully secured Rs 307 crore for financing initiatives aimed at bolstering the Micro, Small, and Medium Enterprises (MSMEs) sector within the state.

These funds are secured through Non-Convertible Debentures (NCDs) with 10-year term bond issuance, facilitated via the BSE Electronic Book Platform (EBP), carries a competitive coupon rate of 8.89 per cent.

Additionally, KFC has outlined plans to further augment its financial resources, aiming to raise approximately Rs 700 crore from the bond market in the upcoming fiscal year.

KFC attributes its ability to secure funds at favourable rates to its distinguished AA credit rating from both the Reserve Bank of India (RBI) and SEBI-approved rating agencies.

Sanjay Kaul, Chairman and Managing Director, KFC, highlighted the market's confidence in the corporation's financial robustness, evident in the successful mobilisation of funds through NCDs.

He emphasised that the lower coupon rate and robust investor demand underscore the market's trust in KFC's sustainability-driven approach.

He stated, “The lower coupon and strong demand from investors show the market confidence in the financial strength of KFC. It is the success of our sustainability-driven strategy.”

Recently, the state government injected Rs 100 crore of capital into KFC, bolstering its net worth to over Rs 1,000 crore.

Since 2016, KFC has been raising funds independently, leveraging the strength of its balance sheet without government guarantees.

As part of its ongoing support for the MSME sector, KFC introduced the Kerala MSME Bill Discounting Platform. This initiative aims to enhance liquidity for MSMEs by facilitating the discounting of their outstanding bills from the government.

(KNN Bureau)