Home Credit India Finance Pvt Ltd, a non-banking finance company, has concluded a two-wheeler loan securitisation transaction, raising Rs 41.3 crore via this route.
Loan securitisation is a process in which the underlying pool of assets are structured or packaged and sold as financial instruments to investors either directly or through a special purpose vehicle.
This is the first-of-its-kind two-wheeler loan securitisation deal done by Home Credit India, which is part of Home Credit B.V.
DCB Bank and IFMR Capital were investors in the issue. As part of the transaction, the special purpose vehicle (TULMUL IFMR Capital Trust 2017) issued two tranches of pass through certificates which were subscribed by DCB Bank and IFMR Capital.
The senior tranche of the issue has been rated A- (SO) by CRISIL. IFMR Capital Finance Private Limited is the arranger for the issue.
Commenting on the transaction, Mariusz Dabrowski, Chief Financial Officer, Home Credit India said that this is a “landmark transaction for us and paves the way for many more similar deals in future”.
As Home Credit completes five years of operations in India and the domestic securitisation market evolves, plans are afoot to increasingly tap innovative instruments to raise funds, according to Dabrowski.
On partnering with Home Credit India, Murali M Natrajan, Managing Director & CEO, DCB Bank, said that DCB Bank is delighted to be associated with Home Credit and hoped that the investment in the loan securitisation transaction is a beginning of a long and mutually beneficial business relationship.
Kshama Fernandes, CEO, IFMR Capital, said that the Indian securitisation market offers significant opportunities for corporates, especially NBFC, to raise funds through various innovative and cost effective financing instruments.
“We are happy to partner with Home Credit India for this landmark transaction, and believe this is an important milestone in our approach of building long-term access to optimal debt solutions in India”, Fernandes said.