SKS, YES Bank in Rs 50-cr securitisation deal

SKS Microfinance has raised Rs 600 crore through securitisation this month, including a Rs 50-crore deal comprising 65,438 rated contracts with YES Bank.

The securitisation is of receivables from 730,000 micro borrowers and are from 18 states where SKS operates, other than Andhra Pradesh.

In a press release issued today, SKS said the contracts involved in the deal with YES Bank were the first rated assignment for the microfinance sector after the notifications of the Malegam committee. The company said these contracts (loan accounts) were rated PR1+ (SO) by credit rating agency CARE.

“This development reiterates SKS Microfinance’s leadership position in the microfinance sector and the confidence of the financial world in the MFI (microfinance institution) model followed by the company,” said SKS Chief Financial Officer, S Dilli Raj.

 

Instruments with PR1+ (SO) rating have a strong capacity for timely payment of short-term debts and carry the lowest credit risk.