SKS Microfinance Ltd has received sanction for two ‘rated pool assignment' transactions worth Rs 100 crore each, from two different banks, totalling Rs 200 crore. In such transactions, financial institutions sell pools of loans and receivables to investors in order to raise capital that can be used for fresh lending.
“The recent closures, happening in quick succession, demonstrate the increasing confidence of the financial world in the MFI model, in general, and SKS, in particular,” Mr S. Dilli Raj, Chief Financial Officer, SKS Microfinance, said in a release issued on Thursday.
Other sanctions
The Hyderabad-based company also drew Rs 162 crore as the second tranche of its recent Rs 345-crore sanction from another public sector bank.
The pool comprises receivables from over 1.55 lakh women borrowers from the weaker section, as defined by the Reserve Bank of India.
The pool receivables were identified from 18 States (other than Andhra Pradesh) where SKS currently operates.
The SKS scrip climbed 2.83 per cent on the Bombay Stock Exchange, to end at Rs 139.90 on Thursday.