Magma Leasing raises US$ 15 million capital from Netherlands Development Finance Company (FMO)

Magma Leasing Ltd has announced that the Board of Directors of the Company at its meeting held on March 28, 2007, has approved placement of US$ 15 million (approx Rs 65 cr) of Redeemable Preference Shares to The Netherlands Development Finance Company (FMO), Netherlands. The fresh investment, as per RBI guidelines, will be treated as Tier-2 capital in the Company.

This follows an earlier investment of Rs 21 cr by FMO in Magma Preference shares during February 2006.

Commenting on the transaction, Anjan Mitra, Chief Financial Officer of the Company said:

"FMO's decision to invest an additional Rs 65 crore in Magma is a statement of confidence in the company's strategy and business model and in the growth prospects of both Magma & the Indian retail finance market.

The funds raised will strengthen our balance sheet, and augment our ability to write higher business volumes" said Mr. Anjan Mitra, Chief Financial Officer of the Company.

Source : Equity Bulls

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