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SKS Microfinance completes Rs 162.62 crore securitization

28 Feb 2014 Evaluate

SKS Microfinance has completed the eighth substantial microfinance securitization during the current financial year of Rs 162.62 crore. With this, the total sum of securitizations completed for FY14 (YTD) is Rs 1,270.91 crore. The company has downloaded the receivables from micro loans extended to 1,90,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a leading private sector bank. The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines.

Notably, 27% of the pool represents women entrepreneurs from Scheduled Castes and Scheduled Tribes, 17% from minorities, 38% from Backward Castes and the remaining 18% from women belonging to the other castes. The entire pool comprises receivables from women entrepreneurs belonging to weaker sections.

The pool is rated A+ (SO) by a leading rating agency signifying ‘adequate degree of safety regarding timely servicing of financial obligations’. Such instruments carry a low credit risk.

 

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