SKS Microfin raises Rs 54.5 cr via securitisation deal

N. S. VageeshV. Rishi Kumar Updated - March 12, 2018 at 12:45 PM.

SKS Microfinance Ltd has raised Rs 54.48 crore through a securitisation transaction.

The company has aggregated nearly 65,000 micro-loans to rural women into a special purpose vehicle and issued pass through certificates that have been purchased by an NBFC.

The company had raised Rs 200 crore through another securitisation deal in which a public sector bank purchased the certificates a month ago.

"The present transaction indicates that it is possible to generate interest outside the banking system also for a well-originated microfinance paper," said S. Dilli Raj, Chief Financial Officer, SKS Microfinance Ltd.

"The pool is well-diversified with the top three states contributing 45.38 per cent and the top ten branches about 4.85 per cent of the pool principle. The average loan amount is Rs 11,572," he added.

Rating agencies have awarded the 'Highest Safety Rating'.

"The rating is based on the credit quality of the underlying loans, the transaction structure and defined payment mechanism, support in the form of credit-cum-liquidity enhancement facility, the sound legal structure of the transaction and the track record and good performance of SKS," according to a statement issued by the rating agencies.

Published on December 7, 2012 05:18