SKS Microfinance raises Rs 81 cr via securitization

Hyderabad: SKS Microfinance Limited on Wednesday it raised Rs 80.81 crore through securitization of receivables. This is the second such deal the only-listed micro lender has completed during the current fiscal.

“SKS Microfinance has downloaded the receivables from micro loans extended to 100,850 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a major private sector bank. Notably, the entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines,” the company said in a release.

Notably, 30 per cent of the pool is from Scheduled Caste and Scheduled Tribe entrepreneurs, 16 per cent from minorities, 37 per cent from backward caste and the remaining 17 per cent from women belonging to the other castes. The entire pool comprises receivables from women entrepreneurs from weaker sections.

The pool is rated AA (SO) signifying 'high degree of safety regarding timely servicing of financial obligation' by one of the leading rating agencies.

The pool is structured with geographical diversity as it comprises receivables from 12 non-Andhra Pradesh states and subjected to a minimum seasoning of three months.