BackSKS raises `200 crore through securitization deal
The company has pooled loans given to more than 260,000 borrowers into a special purpose vehicle
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Mumbai: SKS Microfinance Ltd, India’s lone listed microlender, on Tuesday said it had raised ₹ 200 crore through a loan securitization transaction. Securitization refers to pooling of loan assets to marketable securities and selling it to buyers.
SKS said the company pooled loans given to more than 260,000 borrowers into a special purpose vehicle and pass-through certificates thus generated were sold to banks.
“The present transaction generates liquidity of ₹ 200 crore for SKS Microfinance and also brings in the concomitant capital relief," said S. Dilli Raj, chief financial officer at SKS.
About 26% of the pool is from loans given to scheduled caste and scheduled tribe entrepreneurs, 16% from minorities and the remaining 58% from women belonging to the other backward castes, Dilli Raj said in a release. Rating agency Care Ltd has given top rating to the loan pool.
Since October 2010, when a state-law pushed the microlenders to a crisis, SKS has raised ₹ 1,850 crore from 16 securitization transactions, the company said.
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