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SKS Microfinance obtains sanction for largest rated pool assignment

27 Feb 2012 Evaluate

SKS Microfinance has obtained sanction for assignment of a rated pool of Rs 354 crore from a major public sector bank. This sanction received by the company is the largest rated pool assignment transaction in the Indian microfinance history.

SKS Microfinance has already drawn down the first tranche of Rs 78.7 crore comprising receivables from micro women borrowers from the weaker sections, as defined by the Reserve Bank of India. Pool receivables are identified from 18 non-Andhra Pradesh states where SKS Microfinance operates. The pool is well diversified with a single branch accounting for less than 1% of the pool, with the average loan amount being Rs 10,717.

This pool is rated as CARE A1+(SO) (Highest Safety) by CARE. Instruments with a CARE A1+ (SO) rating are considered to have a strong capacity for timely payment of short-term debt obligations and carry the lowest credit risk.

SKS Microfinance (SKS) is a non-banking finance company (NBFC-MFI), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households. SKS operates across 19 states of India.

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