Kolkata: Microfinance company Satin Creditcare Network has raised Rs 120 crore in a securitization deal with HSBC India.
The transaction was concluded with a coupon rate of 9.30%, the company said Wednesday. The deal involved issuance of pass-through certificates (PTC) for an exact amount of Rs 119.12 crore.
While the NBFC-MFI has been using the securitisation route to expand its funding base and optimize its capital structure, this is the first ever deal with HSBC, Satin chairman HP Singh told ET.
The transaction has a par structure, where the loan pool is assigned to the trust for a purchase consideration equal to 87.5% of the pool principal. The trust will issue Series A1 PTCs for 87.5%, and 12.5% of the initial pool principal will act as overcollateralization. The deal is set to mature in August 2026.
