SKS Microfinance completes fresh securitisation worth $30M

Public-listed microlender SKS Microfinance Ltd has completed a securitisation worth Rs 183.02 crore ($30.1 million), as per a stock market disclosure.

This is the third and biggest securitisation in this month and eleventh during this financial year by SKS. With this new tranche, SKS has completed securitisation worth a total of Rs 1,560.96 crore since April 2013.

"The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines. The pool is rated AA (SO) by a leading rating agency signifying a 'high degree of safety regarding timely servicing of financial obligations'. Such instruments carry a very low credit risk," the company said in the filing.

The microfinance institution completed two more securitisation deals worth Rs 26.73 crore and 80.30 crore respectively early this month.

In February too it had secured three securitisation deals worth Rs 543.54 crore after starting the new calendar year with one securitisation worth Rs 55.56 crore. Previously 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.

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)

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