The transaction is possibly the first substantial securitization deal in FY14 in the microfinance sector.
SKS Microfinance Limited announced the conclusion of a securitization transaction for Rs. 321 crore, rated A1+ (SO) by a leading rating agency, with a major public sector bank.
The transaction is possibly the first substantial securitization deal in FY14 in the microfinance sector.
“This fiscal we could complete the first securitization transaction in Q2 itself as against Q3 in FY13,” said S. Dilli Raj, Chief Financial Officer, SKS Microfinance Limited. “The present transaction generates liquidity of Rs. 321 crore for SKS Microfinance Limited, and enables the Company to extend micro loans to 4,75,000 rural women entrepreneurs. Notably, 29% of the pool is from loans extended to women entrepreneurs from Scheduled Castes and Scheduled Tribes, 17% from minorities, 37% from Backward Castes and the remaining 17% from women belonging to the other castes. The entire pool thus qualifies for weaker section treatment for the bank."
Another significant aspect to be noted is that the transaction further corroborates the fact that securitization is emerging as a meaningful financial inclusion tool
SKS Microfinance Limited announced the conclusion of a securitization transaction for Rs. 321 crore, rated A1+ (SO) by a leading rating agency, with a major public sector bank.
The transaction is possibly the first substantial securitization deal in FY14 in the microfinance sector.
“This fiscal we could complete the first securitization transaction in Q2 itself as against Q3 in FY13,” said S. Dilli Raj, Chief Financial Officer, SKS Microfinance Limited. “The present transaction generates liquidity of Rs. 321 crore for SKS Microfinance Limited, and enables the Company to extend micro loans to 4,75,000 rural women entrepreneurs. Notably, 29% of the pool is from loans extended to women entrepreneurs from Scheduled Castes and Scheduled Tribes, 17% from minorities, 37% from Backward Castes and the remaining 17% from women belonging to the other castes. The entire pool thus qualifies for weaker section treatment for the bank."
Another significant aspect to be noted is that the transaction further corroborates the fact that securitization is emerging as a meaningful financial inclusion tool
No comments:
Post a Comment