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SKS securitizes portfolio of Rs 321 crore


SKS securitizes portfolio of Rs 321 crore
SKS Microfinance Limited today completed two rated pool assignment transactions worth Rs 221 crore and two assignment transactions worth Rs 100 crore from two public sector and an equal number of private banks totalling Rs 321 crore. This makes them complete six transaction worth Rs 918 crore since this January.

The shares of the company were trading higher by 2.38% at Rs 131.35 on BSE at 11.55 sm IST.


The present set of four transactions worth Rs 321 crore has been obtained at an annual interest rate of 12 per cent, priced 150 basis points lower than the previous two transactions. The development is a clear pointer to the growing confidence of the financial world in SKS Microfinance, bringing down the risk premium.

"Fund flow has been gaining momentum in recent months with the overall environment turning positive for the microfinance sector," said Mr S Dilli Raj, Chief Financial Officer, SKS Microfinance Limited.

SKS Microfinance Limited has completed 15 assignment/ securitization transactions post the AP MFI Act. The 12th transaction of Rs 121 crore is from a public sector bank while the 13th transaction of Rs 100 crore is from a private sector bank. The subsequent transactions are worth Rs 50 crore each.

Both the Rs 121 crore and Rs 100 crore portfolios are rated as CARE A1 + SO (Highest Safety) by CARE rating agency. Instruments with a CARE A1 + SO rating are considered to have a strong capacity for timely payment of short term debt obligations and carry the lowest credit risk.

Read more about: sks microfinance shares bse
Story first published: Friday, March 23, 2012, 11:58 [IST]
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