IFMR Capital has closed its seventh securitisation transaction with Janalakshmi Financial Services.
The latest transaction was closed on August 18th. Delta Pioneer IFMR Capital 2010, is with Bengaluru based microfinance institution (MFI) Janalakshmi Financial Services. With this INR 250 million transaction, IFMR Capital brings a new class of investors into its fold-NBFCs. This takes the total funding facilitated by IFMR Capital for this sector to more than INR 2.1 billion. The transaction is backed by 35,560 microloans originated by Janalakshmi, an new-age urban MFI that uses smart-card technology to better capture client information and control risk.
The securitised instruments have been issued in the form of senior, AA(so) rated securities, subscribed by a new bank treasury and one of the largest NBFCs, and an unrated subordinated piece subscribed by IFMR Capital. 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.
Through this structure and IFMR Capital’s investment in the subordinated piece, a new, more reliable and cost-effective window of funding has been opened for Janalakshmi.
Know more about Loan Securitization transactions in India at the IFMR Database
Source: IFMR Blog