Public-listed microlender SKS Microfinance Ltd has completed a securitisation transaction worth Rs 55.56 crore ($8.9 million), through a private sector bank, as per a stock market disclosure.
The latest tranche is the fifth microfinance securitisation during this financial year by SKS. It completed three securitisation deals worth around Rs 351 crore last month after tying the first transaction worth Rs 321 crore in September.
The total quantum of securitisation completed by SKS for FY14 has moved to Rs 727.37 crore or around $116.6 million.
Shares of the company rose over 7 per cent to 181.65 on the BSE in the early morning trading in a flat Mumbai market on Friday. The securitisation transaction was disclosed after-market hours on Thursday.
In the latest transactions, the firm has downloaded the receivables from micro loans extended to more than 60,000 rural women entrepreneurs to a Special Purpose Vehicle and Pass Through Certificates (PTCs) have been purchased by a private sector bank.
The entire pool qualifies for priority section treatment as per the RBI’s priority sector lending guidelines, the firm added.
“The pool is rated A1 + (SO) by a leading rating agency signifying ‘a very strong degree of safety regarding timely servicing of financial obligation’. Such instruments carry the lowest credit risk,” 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, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala, Punjab and Delhi.
(Edited by Joby Puthuparampil Johnson)