SKS Microfinance has received sanction for two rated pool assignment transactions worth Rs100 crore each from two different banks totaling Rs200 crore.
SKS Microfinance has also drawn down Rs162.1 crore as the second tranche of the recent Rs 54 crore sanction, which is the largest such deal in the MFI history, obtained from a public sector bank.
The Rs 200 crore sanctions from two different entities are SKS Microfinance Limited’s 10th and 11th assignment/ securitization transactions post the AP MFI Act.
'The recent closures, happening in quick succession, demonstrate the increasing confidence of the financial world in the MFI model in general and SKS in particular,' said M r S Dilli Raj, Chief Financial Officer, SKS Microfinance. 'The Government of India's official announcement regarding the tabling of the M FI bill in the ongoing Budget Session is another significant milestone in MFI history.'
The rated pool assignment transaction of Rs162.1 crore is rated CARE A1+ (SO) (Highest Safety) by CARE. Instruments with a CARE A1+ (SO) rating are considered to have a strong capacity for timely payment of short term debt obligations and carry the lowest credit risk. The pool comprises receivables from 1,55,579 micro women borrowers from the weaker section as defined by the RBI.
Pool receivables are identified from 18 non-Andhra Pradesh states where SKS Microfinance operates. The pool is well diversified with a single branch accounting for less than 1% of the pool, with the average loan amount being Rs11,177.All these rated papers have shown robust collection efficiency of more than 98%. Credit enhancement has not been utilized in any of these structures.
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SKS Microfinance has also drawn down Rs162.1 crore as the second tranche of the recent Rs 54 crore sanction, which is the largest such deal in the MFI history, obtained from a public sector bank.
The Rs 200 crore sanctions from two different entities are SKS Microfinance Limited’s 10th and 11th assignment/ securitization transactions post the AP MFI Act.
'The recent closures, happening in quick succession, demonstrate the increasing confidence of the financial world in the MFI model in general and SKS in particular,' said M r S Dilli Raj, Chief Financial Officer, SKS Microfinance. 'The Government of India's official announcement regarding the tabling of the M FI bill in the ongoing Budget Session is another significant milestone in MFI history.'
The rated pool assignment transaction of Rs162.1 crore is rated CARE A1+ (SO) (Highest Safety) by CARE. Instruments with a CARE A1+ (SO) rating are considered to have a strong capacity for timely payment of short term debt obligations and carry the lowest credit risk. The pool comprises receivables from 1,55,579 micro women borrowers from the weaker section as defined by the RBI.
Pool receivables are identified from 18 non-Andhra Pradesh states where SKS Microfinance operates. The pool is well diversified with a single branch accounting for less than 1% of the pool, with the average loan amount being Rs11,177.All these rated papers have shown robust collection efficiency of more than 98%. Credit enhancement has not been utilized in any of these structures.
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