Public-listed microlender SKS Microfinance Ltd has completed a securitisation worth Rs 162.62 crore ($26.2 million), as per a stock market disclosure.
This is the eighth microfinance securitisation during this financial year and the fourth since January 1 by SKS. The latest tranche takes the total to Rs 1,270.91 crore since April 2013.
SKS completed two more securitisation deals worth Rs 158.27 crore and Rs 222.65 crore respectively early this month following the fifth securitisation worth Rs 55.56 crore last month. It completed three securitisation deals worth around Rs 351 crore in December 2013 after tying the first transaction worth Rs 321 crore in September 2013.
In the latest deal, it has downloaded the receivables from micro loans extended to 190,000 rural women entrepreneurs to a special purpose vehicle, and pass through certificates (PTCs) have been purchased by a leading unnamed private sector bank. The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines.
Notably, 27 per cent of the pool represents women entrepreneurs from scheduled castes and scheduled tribes, 17 per cent from minorities, 38 per cent from backward castes and the remaining 18 per cent from women belonging to the other castes. The entire pool comprises receivables from women entrepreneurs belonging to weaker sections.
The pool is rated A+ (SO) by a leading rating agency signifying ‘adequate degree of safety regarding timely servicing of financial obligations’. Such instruments carry a low credit risk.
The pool comprises receivables from 14 non-Andhra Pradesh states and has been subjected to a seasoning of three months, it said.
WestBridge Capital-backed SKS Microfinance, the only listed micro-lender, operates across 16 states, including Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala, Punjab and Delhi.
(Edited by Joby Puthuparampil Johnson)