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Home Credit India Finance, a non-banking finance company, has concluded a two-wheeler loan securitisation transaction, raising ₹41.3 crore via this route.
Loan securitisation is a process in which the underlying pool of assets is 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 are investors in the issue. As part of the transaction, a 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 is the arranger for the issue.
Mariusz Dabrowski, CFO, Home Credit India, said 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.
Murali M Natrajan, MD and CEO, DCB Bank, said the bank is delighted to be associated with Home Credit.
Kshama Fernandes, CEO, IFMR Capital, said that the Indian securitisation market offers opportunities for corporates, especially NBFCs, to raise funds through cost-effective financing instruments.
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