SKS completes Rs 81 crore securitisation

Company has downloaded the receivables from micro loans extended to 100,850 rural women to a special purpose vehicle

SKS Microfinance Limited, the only listed micro finance institution (MFI) in the country, stated that it had completed a Rs 80.81-crore securitisation.

SKS has downloaded the receivables from micro loans extended to 100,850 rural women to a special purpose vehicle and pass through certificates (PTC) have been purchased by a major private sector bank, the MFI stated in a press release today.

 A PTC is a document that allows the holder to receive payments or principal and interest from the underlying pool of mortgages.

According to SKS, the entire pool, comprising receivables from women entrepreneurs belonging to weaker sections, qualifies for priority sector lending as per the RBI guidelines. A leading rating agency had rated the pool AA (SO) signifying high degree of safety regarding timely servicing of financial obligation. The pool comprises receivables from 12 non-Andhra Pradesh states.