SKS Microfinance has announced microfinance securitisation of Rs.200 crore.
The announcement comes in the light of issuance of revised securitisation guidelines by the Reserve Bank of India for non-banking finance companies on August 21, stipulating a minimum holding period of three months and a minimum retention requirement of 5 per cent.
“The present transaction will generate liquidity to the SKS and concomitant capital relief,” SKS Chief Financial Officer S. Dilli Raj said.
This corroborated the structuring skills of SKS Microfinance and the credit quality of the non-AP portfolio, which comprised a majority of SC/ST, women and minority entrepreneurs.
The pool is rated CARE A1+(SO), signifying ‘Highest Safety’ by Care Ratings.
The entire pool qualifies for the weaker section treatment as per the apex bank’s priority sector lending requirements.
The company has completed 16 securitisation transactions worth Rs.1,850 crore since October, 2010, following the enactment of the Andhra Pradesh Micro Finance Institutions (regulation of money-lending) Bill.
In addition, the company accessed an incremental debt of Rs.2,000 crore in the last three quarters.
SKS downloaded receivables from micro loans extended to over 2.6 lakh rural women to a special purpose vehicle and pass through certificates had been purchased by a leading public sector bank.
