SKS Microfinance, the only listed microfinance institution (MFI) in the country, said it had securitised Rs 354 crore of receivables from 18 states, excluding Andhra Pradesh. The securitisation was carried out through a major public sector bank.
Securitisation is the process of pooling loans and turning these into marketable securities that can be sold to investors such as banks to raise funds.
"This is the largest rated pool assignment transaction in the Indian microfinance history," the company said at a press release on Monday.
Earlier this month, SKS had completed another securitisation transaction worth Rs 243 crore. The current securitisation is the eighth such transaction carried out by the MFI after the enactment of the Andhra Pradesh MFI Act.
"The Rs 354-crore transaction demonstrates funding concerns raised after the Andhra Pradesh MFI Act are behind the company," said chief financial officer Dilli Raj.
SKS said the pool was well diversified, with an average loan amount of Rs 10,717. The pool is rated CARE A1+(SO) (highest safety) by credit rating agency CARE.
The company said it had already drawn down the first tranche of Rs 78.7 crore, comprising receivables from micro women borrowers from the weaker sections, as directed by the Reserve Bank of India.