Home Credit India closes 2nd loan securitisation; raises Rs 45.3 crore
ET Bureau|
Updated: Nov 07, 2017, 05.50 PM IST
NEW DELHI: Non-Banking Finance Company (NBFC) Home Credit India, part of Home Credit Group B.V, has raised Rs 45.3 crore in two-wheeler loan securitization transaction. This is the second two-wheeler loan securitization deal by the Indian arm of Home Credit Group this year, said a release.
The issue has been subscribed by DCB Bank and IFMR Capital. As part of the transaction, the special purpose vehicle (Tvarita IFMR Capital 2017) issued two tranches of pass through certificates. IFMR Capital is the arranger for the issue.
On the transaction, Mariusz Dabrowski, chief financial officer, Home Credit India, quoted in the release, said, “The market for securitization products in India is evolving and there is scope for growth and innovation. The fact that this transaction has been completed in less than three months of our first deal shows that loan securitization can be a viable source of funds that NBFCs like us can utilize for driving financial inclusion as well. Completion of the issue reflects the confidence that DCB Bank and IFMR Capital have shown in us again and we intend to continue this relationship with them in future.”
According to Kshama Fernandes, CEO, IFMR Capital, “We are committed towards creating an inclusive domestic financial system. Home Credit is a valued partner for us and we are delighted to work with them to help expand access to finance to underserved and unbanked customers.”
In July, Home Credit India had raised Rs 41.3 crore in a two-wheeler loan securitization deal.
Loan securitisation is a process in which the underlying pool of assets are structured or packaged and sold as financial instruments to investor(s) either directly or through a special purpose vehicle. Typically in India, the originators or sellers are banks, non-banking finance companies, housing finance companies & similar other investors.
Home Credit Group is developing its footprint in Asia and in the US, while maintaining its role in Central and Eastern Europe and CIS. Its business model of providing consumer finance products which are easily accessible even at the lower end of the economic scale has been rolled out in China, India and South East Asia.
The issue has been subscribed by DCB Bank and IFMR Capital. As part of the transaction, the special purpose vehicle (Tvarita IFMR Capital 2017) issued two tranches of pass through certificates. IFMR Capital is the arranger for the issue.
On the transaction, Mariusz Dabrowski, chief financial officer, Home Credit India, quoted in the release, said, “The market for securitization products in India is evolving and there is scope for growth and innovation. The fact that this transaction has been completed in less than three months of our first deal shows that loan securitization can be a viable source of funds that NBFCs like us can utilize for driving financial inclusion as well. Completion of the issue reflects the confidence that DCB Bank and IFMR Capital have shown in us again and we intend to continue this relationship with them in future.”
According to Kshama Fernandes, CEO, IFMR Capital, “We are committed towards creating an inclusive domestic financial system. Home Credit is a valued partner for us and we are delighted to work with them to help expand access to finance to underserved and unbanked customers.”
In July, Home Credit India had raised Rs 41.3 crore in a two-wheeler loan securitization deal.
Loan securitisation is a process in which the underlying pool of assets are structured or packaged and sold as financial instruments to investor(s) either directly or through a special purpose vehicle. Typically in India, the originators or sellers are banks, non-banking finance companies, housing finance companies & similar other investors.
Home Credit Group is developing its footprint in Asia and in the US, while maintaining its role in Central and Eastern Europe and CIS. Its business model of providing consumer finance products which are easily accessible even at the lower end of the economic scale has been rolled out in China, India and South East Asia.
