Satin receives credit rating upgrades following their Rs. 100 crore equity and debt capital raise (August '11)

New Delhi, July 25, 2011: Satin Creditcare Network Limited (“Satin”), a North India-based microfinance institution headquartered in Delhi, is pleased to announce that CARE Ratings has reviewed Satin’s operational and financial performance for financial year 2010-11 and has upgraded the MFI grading to
MFI 2 and maintained the rating for non-convertible debentures (“NCDs”) at CARE BBB-.

The ratings upgrade follows the successful completion of Satin’s third round equity infusion of Rs 40 crore (~USD 9 million) from ShoreCap II Limited (“ShoreCap”) and Danish Microfinance Partners K/S (“DMP”) in two tranches in December 2010 and February 2011. Satin was the first Indian microfinance institution to complete a significant equity financing round since the AP microfinance crisis erupted.

In addition, in March 2011, Satin raised Rs 12 crore (~USD 2.7 million) of debt through issuance of secured, redeemable NCDs to DWM (Cyprus) Limited, a member of the Developing World Markets (DWM) group of companies.
Satin also participated in securitization transactions from March 2011 to June 2011, with the amount of securitized portfolio aggregating Rs. 48 crore. The ultimate buyers in the securitization transaction for the senior tranche were Reliance Capital, Ratnakar Bank and Axis Bank. These transactions confirm
Satin’s strength as one of the leading microfinance institutions in the sector today. Unitus Capital was Satin’s sole financial advisor for the equity raise and NCDs and continues to work closely with Satin. IFMR Capital acted as the financial advisor for the securitization transactions.

The ratings upgrade and capital infusions come at a time when many microfinance firms have seen downgrades from rating agencies amid the acute liquidity crisis stemming from the Andhra Pradesh microfinance crisis. Satin’s repayment rates remain near the 99% mark and have not been affected by
the crisis.

As on June 30, 2011, Satin had Rs. 212 crore (~USD 47 million) of portfolio outstanding across 8 states of India, lending to over 235,000 active borrowers. The equity and debt infusion has provided Satin with the impetus needed to grow in the rural areas in North India. Other investors in Satin include Lok Capital LLC., an India-focused microfinance venture capital firm and noted Indian journalist, Swaminathan Aiyar.

Commenting on the transactions and subsequent ratings upgrade, Mr. H P Singh, Chairman cum Managing Director, Satin said, “We are very pleased to partner with ShoreCap, DMP, DWM (Cyprus) Limited, Reliance Capital, Ratnakar Bank and Axis Bank and appreciate the support and commitment shown by them during these turbulent times. We have faced no repayment problems with our
borrowers and are confident that we will be able to expand and serve more rural and urban borrowers throughout Northern India.”

Complimenting Satin on closing the equity transaction successfully, Deepa Hingorani, Head of regional office, IFU, an investor in DMP said, “We are pleased with DMP’s investment in an operationally robust and established company like Satin, with a similar social mandate as us. DMP hopes to build a long-term partnership with Satin and look forward to supporting them in future endeavors.”

Congratulating Satin on closing both tranches of equity, Davis Golding, EVP and Chief investment officer, ShoreCap, said, “The investment in Satin is our first investment in India with ShoreCap II. We are excited to partner with a microfinance institution like Satin that has a strong presence in a relatively less
penetrated geography such as Northern India.”

Jim Kaddaras, Partner for Debt, Structuring and Legal Affairs at DWM, said, “We are delighted to be able to support Satin at a time when Indian MFIs need reliable long-term partners who share both their financial and social goals. DWM is committed to the microfinance sector in India, and we hope to expand our support to Indian MFIs this year.”

“Unitus Capital takes pride in having helped structure and facilitate the equity and NCD transactions for Satin, which has shown great leadership during the recent uncertain times. These transactions indicate that Satin has played a leading role in turning the tide for the India microfinance sector. ShoreCap, DMP
and DWM have also shown great commitment and foresight in these uncertain times,” said Mr. Eric Savage, Co-Founder and President of Unitus Capital.

Notes to Editor:
About Satin Creditcare Network Limited

Satin is a Delhi-headquartered Non Banking Finance Company which engages in microfinance activity to rural and urban poor in North India. As on June 30, 2011, Satin had Rs. 212 crore (~USD 47 million) of portfolio outstanding across 8 states of India, lending to over 235,000 active borrowers.

Satin aims to provide affordable microcredit for productive activities to both urban and rural borrowers. These borrowers typically lack access to funds from any other formal financial institutions. The loans should eventually increase their income generating capacity. Satin’s complementary objective is to provide clients with employment and healthy working environments. Other investors in Satin include Lok Capital LLC., an India-focused microfinance venture capital firm and noted Indian journalist, Swaminathan Aiyar. For more information, visit www.satincreditcare.com

About ShoreCap II Limited
ShoreCap II Limited is an international private equity company focused on investing in small business banks and regulated microfinance institutions that strive to profitably meet the credit needs of microentrepreneurs and small businesses in underserved markets. ShoreCap II invests in countries with
developing and transitional economies. It is a follow-on fund to ShoreCap International Ltd., which was founded in 2003. Between 2003 and 2008, ShoreCap International invested in 15 small business banks
and regulated microfinance institutions and ShoreCap II will continue to do more of the same types of investments. Along with equity and banking expertise, through its sister non-profit company, Capital Plus Exchange, subsidized technical assistance is provided to all of ShoreCap’s investee institutions.

About DMP
Danish Microfinance Partners K/S is an investment vehicle for Danish fund IFU and other Danish investors such as PKA A/S and PBU A/S for investment in the microfinance sector. IFU promotes economic activity in developing countries in collaboration with Danish trade and industry. IFU has invested in close to 700 projects in 83 countries. Total investments in these projects exceed DKK 95
billion (USD 17 billion), of which the IFU’s contributions amount to DKK 8.2 billion (USD 1.5 billion). For more information, visit www.ifu.dk

About DWM
Developing World Markets is at the forefront of a global effort to create investible solutions to meet social and economic needs of the developing world. DWM structures transactions that open doors to the international capital markets for microfinance institutions and other socially motivated organizations. To date, DWM has raised or advised on over USD 1 billion for microfinance and other
socially positive sectors. It currently manages over USD 850 million in socially positive assets. For more information, visit www.dwmarkets.com

About Unitus Capital
Unitus Capital is a financial services firm specializing in arranging capital for companies benefiting those at the bottom of the economic pyramid in sectors including microfinance, renewable energy, health care and education. With operations in Bangalore, Beijing, London, Singapore and Sydney, Unitus Capital
delivers a range of financial advisory and capital market services to clients across Asia. For more information, visit www.unituscapital.com

For more information, please contact:
Mr. Eric Savage, Co-Founder and President: esavage@unituscapital.com
Ms. Neha Mudaliar, Associate Vice President: nmudaliar@unituscapital.com