18 NBFC-MFIs pool Rs 835 cr for securitisation, easing liquidity crisis

The first tranche of the pool, worth Rs 79 crore, has been bought HLF

Eighteen micro finance non-banking financial companies (NBFC-MFIs) have pooled assets worth a combined Rs 835 crore for securitisation, to tide over a liquidity problem in the sector.

The first tranche of the pool, worth Rs 79 crore, has been bought by Hinduja Leyland Finance (HLF).

In November, the Microfinance Institutions Network (MFIN) deliberated on ways to address the liquidity stress that member NBFCs faced. One of these was this pooling of assets for securitisation. A committee was formed to select a suitable facilitator and appointed Northern Arc Capital to structure and arrange funding for multiple MFIs, through a series of Multi Originator