IFMR closes India's first collateralised loan obligation

Chennai -based non-banking financial company (NBFC), IFMR Capital said it has closed the country's first Collateralised Loan Obligation (CLO) transaction after the issuance of Securitisation Guidelines in 2006.

IFMR Capital extended loans from its own balance sheet to four NBFCs with an outstanding amount of Rs 114 crore, and passed on the pooled loans to a domestic mutual fund investor through the securitisation route. This form of secondary sale is especially useful to provide capital market investors indirect exposure to a range of well-performing financial-inclusion-focused NBFCs. This is the second product structuring by IFMR Capital in FY18, after India’s first