Independent Research and Policy Advocacy

IFMR Capital Structures INR 165.5 million Microloan Securitisation with Grameen Koota

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IFMR Capital recently structured and arranged an INR 165.5 million securitisation transaction. The transaction is backed by 25,768 microloans originated by well-known Bangalore based MFI, Grameen Financial Services Pvt. Ltd., popularly known as Grameen Koota. This is the third rated transaction with Grameen Koota as originator. Closing the transaction at this point of time in the sector is an achievement in itself and a demonstration of IFMR Capital’s commitment to providing efficient and reliable access to capital for institutions that impact low-income households.

Epsilon Pioneer IFMR Capital 2010, the Special Purpose Vehicle created for the transaction has issued the securitised instruments rated by CRISIL in the form of a 79% senior tranche rated P1(so) and a 21% unrated subordinated piece subscribed by IFMR Capital. The P1(so) tranche has a tenure of 5.49 months. As in all transactions till date, IFMR Capital is a primary investor with investment in the subordinated piece, signalling its commitment to connecting high-quality institutions with capital markets.

Till date IFMR Capital has provided financing to the microfinance sector worth, INR 5.2 billion in the form of microfinance debt capital market securitisations and senior secured bridge loans.

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