SKS Microfinance has completed the sixth substantial microfinance securitization during the current financial year of Rs 222.65 crore. With this, the total sum of securitizations completed for FY14 (YTD) is Rs 950 crore. This transaction is priced at a good 250 basis points lower than our cost of borrowing for the previous quarter. The first five substantial securitizations were - Rs 321 crore (on September 30, 2013), Rs 80.81 crore (on December 11, 2013), Rs 215 crore (on December 19, 2013), Rs 55 crore (on December 30, 2013) and Rs 55.56 crore (on January 30, 2014).
SKS Microfinance has downloaded the receivables from micro loans extended to 3,00,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a major public sector bank. 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 very low credit risk.
The pool is structured with geographical diversity as it comprises receivables from 14 non- Andhra Pradesh states, and has been subjected to a seasoning of three months.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 908.70 |
| Shriram Finance | 1036.50 |
| Aditya Birla Capital | 340.20 |
| Chola Invest & Fin. | 1579.65 |
| Tata Capital | 337.60 |
| View more.. | |
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