Mufin Green Finance Limited has announced a significant funding milestone with the signing of a finance agreement with Finnish Fund for Industrial Cooperation Ltd (Finnfund) for a loan facility of up to $12 million. The company's shares were trading at ₹118.00, up by ₹0.28 or 0.24% on the NSE at 11:55 am, reflecting positive market sentiment following the announcement.

Loan Facility Details

The structured financing arrangement provides Mufin Green Finance with substantial capital to expand its operations:

About Finnfund

Finnfund operates as a development finance company incorporated under Finnish laws and is majority-owned by the Government of Finland. This partnership brings international credibility and support to Mufin Green Finance's growth strategy, aligning with global sustainable finance initiatives.

Security and Transaction Structure

The finance agreement includes specific security arrangements to protect the lender's interests:

• Security Arrangement: Finnfund will have a charge on identified loan receivables of Mufin Green Finance
• No Special Rights: The agreement excludes board appointments, first right to share subscription, or restrictions on capital structure changes
• Clean Transaction: No related party arrangements are involved in this transaction
• No Shareholding: Finnfund holds no shareholding in Mufin Green Finance Limited

Business Impact

The term loan facility will be utilized specifically to finance the company's onward lending business, providing Mufin Green Finance with enhanced capital capacity to serve its customer base and expand its lending portfolio. This funding arrangement supports the company's operational growth without diluting existing shareholder equity or imposing restrictive governance conditions.

Mufin Green Finance has announced a strategic partnership with a Finnish fund, securing up to $12 million in funding. This significant deal marks a major milestone for the green finance company, providing substantial capital to support its business operations and expansion initiatives.

Partnership Details

The agreement with the Finnish fund represents a substantial financial commitment that will enhance Mufin Green Finance's capital base and operational capabilities.

Strategic Significance

This partnership demonstrates international investor confidence in Mufin Green Finance's business model and growth prospects. The Finnish fund's investment aligns with the growing global focus on sustainable finance and environmental initiatives. The substantial funding will provide Mufin Green Finance with enhanced financial flexibility to pursue its strategic objectives in the green finance sector.

Market Impact

The deal positions Mufin Green Finance to capitalize on expanding opportunities in the sustainable finance market. With access to up to $12 million in funding, the company is well-positioned to strengthen its market presence and pursue growth initiatives that align with its green finance mandate.