SKS Microfinance Limited today announced the completion of rated pool assignment (securitization) of Rs 550 cr.
This comprises 2 transactions of Rs 310 cr and Rs 240 cr, with both transactions rated PR1+ (SO) by CARE, with the assignees being banks.
This assignment follows a securitization of a pool of Rs 60cr with an NBFC earlier this month. Instruments with a PR1+ (SO) rating are considered to have a strong capacity for timely payment of short term debt obligations and carry the lowest credit risk. The securitization is of receivables from 750,000 micro borrowers as defined by the RBI. Pool receivables are identified from 18 non AP states where SKS operates. The pool is well diversified with a single branch accounting of less than 1% of the pool, with the average loan amount being Rs 12,000.
Commenting on the assignment, Mr. S Dilli Raj, CFO – SKS Microfinance Ltd, said “in keeping with its leadership role, SKS Microfinance is delighted to bring back the assignment/ securitization of microfinance receivables, which had virtually ceased post the AP MFI Act. The transactions will further augment the liquidity position of SKS Microfinance. One of the transactions for Rs 310 cr represents the single largest rated pool assignment in the Indian MFI sector”.
About SKS Microfinance Limited:
SKS Microfinance Limited (SKS) is a non-banking finance company (NBFC), registered and regulated by Reserve Bank of India, whose mission is to eradicate poverty by providing financial services to the poor. SKS operates across 19 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Orissa, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Himachal Pradesh, Haryana, West Bengal, Jharkhand, Chhattisgarh, Gujarat, Kerala, Tamil Nadu, Punjab and Delhi. SKS has been recipient of many received awards, which include Social and Corporate Governance Award by BSE, NASSCOM Foundation for Best Corporate Social Responsibility Practice (2007), Social Performance Reporting Award (MFIs) - Silver Category for Social Performing rating conducted by MIX market (2009) etc. SKS was founded by Dr Vikram Akula, who has been conferred the award of Young Global Leader by World Economic Forum and Business Transformation Entrepreneur of the Year by Ernst & Young (2010). He was named by TIME magazine as one of the 100 Most Influential People in the World (2006).
