Northern Arc Capital invests in India's first Rs 38-cr PerSec transaction

Northern Arc Capital has closed India’s first Persistent Securitisation (PerSec) transaction of Rs 38 crore after the issuance of the Securitisation Guidelines in 2012. 

The underlying assets are vehicle loans originated by EssKay Fincorp Limited. Northern Arc Capital, erstwhile IFMR Capital, had earlier executed a similar structure in 2011 for microfinance loans. Globally, Persistent Securitisation has found acceptance amongst a wide variety of market participants, issuers as well as investors alike, with underlying receivables ranging from vehicle loans and agricultural receivables to mortgagees. 

Northern Arc Capital is a Chennai-based non-banking financial company (NBFC).

A persistent securitisation structure allows an originator