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IFMR Capital, a Chennai-based non-banking finance company, has closed a collateralised loan obligation transaction. It extended the loan from its own balance sheet to four NBFCs, with an outstanding amount of ₹114 crore and passed on the pooled loans to a domestic mutual fund investor through the securitisation route. This secondary sale helps provide capital market investors indirect exposure to a range of well-performing NBFCs focussed on financial inclusion. This is IFMR Capital’s second landmark product structuring this financial year; the first was a pooled loan issuance in June.
The underlying loans are diversified across NBFCs that operate in sectors such as small business loans, fintech and micro-finance.
The NBFCs are Annapurna Microfinance Pvt Ltd, Zen lefin Pvt Ltd (Capital Float), Essel Finance Business Loans Ltd and Home Credit India Finance Pvt Ltd, which have individual shares of 20-30 per cent in the overall loan pool.
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