SKS raises Rs 243 crore via securitisation

Hyderabad-headquartered SKS Microfinance Limited, the only listed microfinance institution (MFI) in India, has announced the completion of a rated pool assignment of Rs 243 crore, the largest by any microfinance institution in the financial year 2012.

The pool comprises receivables from 322,312 women borrowers from the weaker sections as defined by the Reserve Bank of India, and are identified from 18 non-Andhra Pradesh states where SKS operates, according to a company release.

The pool is well diversified with a single branch accounting for less than 1% of the pool, with the average loan amount being Rs 11,131.

The rated pool assignment transaction of Rs 243 crore is rated with CARE A1+ (SO), which is considered to have a strong capacity for timely payment of short-term debt obligations and carry the lowest credit risk.

"SKS delivered all its promises to the credit-granting community through the painful transition phase, post the Andhra Pradesh MFI Act. Now, it is time to reap the fruits of consolidation," said SKS Microfinance chief financial officer Dilli Raj.

Prior to this transaction, SKS completed six assignment/securitization post the AP MFI Act. All the rated papers have shown robust collection efficiency of more than 98%.Credit enhancement has not been utilised in any of these structures, the release added.

SKS' scrip is currently trading at Rs 98.20, up 9.97%, over the previous close of Rs 89.30.