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IFMR Capital has closed a pooled loan issuance under which a single lender Hinduja Leyland Finance has extended term loans to eight non-banking finance companies (NBFCs). The loans are bound together by a common guarantee provided by IFRM Capital, which helps improve the credit rating for these loans above the borrowers’ individual rating. This deal assumes significance because many borrowers may find it difficult to raise funds from diverse lenders at competitive pricing on a stand-alone basis. By providing a common guarantee to a pool of loans, the credit quality and rating improves, thus enhancing the borrowing ability and the pricing for the borrowers.
The transaction pooled together loans from NBFCs in micro-finance, commercial vehicle and small business loan segment, including Aye Finance Pvt Ltd, Intrepid Finance and Leasing Pvt Ltd, Kogta Financial (India) Ltd, Pahal Financial Services Pvt Ltd, Saija Finance Pvt Ltd, Shri Ram Finance Corporation Pvt Ltd, S.M.I.L.E. Microfinance Ltd and Svasti Microfinance Pvt Ltd. The guarantee binding the loans is in the form of an unconditional and irrevocable common guarantee on the overall transaction size of ₹106.50 crore. IFMR Capital has raised over ₹45,000 crore of debt for its clients since it was established in 2008.
It connects NBFCs serving financially excluded households and businesses such as micro-finance, affordable housing finance and vehicle finance with investors and lenders through debt capital markets.
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