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Business News/ Companies / SKS Microfinance announces two securitisation deals
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SKS Microfinance announces two securitisation deals

SKS Microfinance announces two securitisation deals

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Hyderabad: SKS Microfinance on Tuesday announced securitisation of 550 crore of receivables from its borrowers with two banks, which will help the company improve its liquidity position.

The securitisation is of receivables from 7.5 lakh micro borrowers. Pool receivables were identified from 18 non-AP states where SKS operates, the company said.

The pool is well diversified with the average loan amount being 12,000. The securitisation comprises two transactions rated by Care. While one transaction is for 310 crore, another is for 240 crore, the company said.

“SKS Microfinance is delighted to bring back the assignment/ securitisation of microfinance receivables, which had virtually ceased post the AP MFI Act. The transactions will further augment the liquidity position of the company. The transactions for 310 crore represents the single largest rated pool assignment in the Indian MFI sector," S Dilli Raj, CFO, SKS Microfinance Ltd, said.

The names of the two banks which entered into the securitisation deals were not revealed.

SKS, had recently closed a 60-crore securitisation deal with a non-banking finance company. It was the first such deal after the turmoil faced by the sector over the last few months in Andhra Pradesh and elsewhere after passing of an act by Andhra Pradesh government regulating MFIs activities.

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Published: 29 Mar 2011, 05:05 PM IST
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