Vivriti Capital, a marketplace for corporate credit, has concluded a Collateralized Asset-backed Securitisation (CABSEC) transaction of Rs 84 crore with a leading private sector bank.
CABSEC, a term coined by Vivriti, enables access to growth capital for MFIs through the pooling of their assets and common credit enhancement, the company said.
The transaction, claimed to be the first of its kind, involved sale of assets pooled into a Special Purpose Vehicle (SPV) by seven micro-finance institutions, through the issuance of Pass Through Certificates (PTCs) to the bank and to Vivriti Capital, which acted as an investor in a subordinated tranche.
The MFIs that participated in the transaction were Satya MicroCapital, Sonata Finance, ASA International India, Sambandh, Svasti Microfinance, Pahal Financial Services, and S.M.I.L.E Microfinance.
Soumendra Ghosh, Head – Capital Markets, Vivriti Capital said in a statement, “This structure blends risk management and incentive alignment, wherein the bank invested in a pool of seasoned loan contracts diversified by geography and originator, protected significantly through first and second loss mechanisms.”
Vivriti Capital recently closed its Series A round of funding, wherein it raised Rs 200 crore from Creation Investments.
Started in mid-2017 by Gaurav Kumar and Vineet Sukumar, Vivriti Capital was conceptualised with the objective of creating the largest technology-enabled platform for credit in India. Vivriti received approval from the Reserve Bank of India to float an NBFC in January 2018. The platform works with over 150 clients across 12 sectors and 100 investors.
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