Microfinance institution (MFI) Equitas Microfinance India Private Limited has announced that it has securitized loans totaling INR 1 billion (USD 22 million). IFMR Capital, a non-banking financial institution based in India that seeks to facilitate access to capital for institutions aiding low-income households, was responsible for handling the deal and invested in the transaction as well. In the deal, Equitas provides cash collateral of INR 157 million (USD 3.5 million) to protect investors against losses. IFMR Capital created Gamma Pioneer IFMR Capital 2010 for this specific transaction and has thus far issued three tranches of securities with subscribers including UTI Mutual Fund, HDFC Bank and Reliance Capital [1]. As of March 2010, Equitas reports to the Microfinance Information Exchange (MIX) assets of USD 165 million, a gross loan portfolio of USD 134 million, 888,600 active borrowers, return on assets of 4.5 percent and return on equity of 12.38 percent.
About Equitas Microfinance India Private Limited: Equitas is a microfinance institution (MFI) that was created in December 2007 and is located in Chennai, India. The company provides microcredit to low-income households in India. The objective of the company is to make credit available at a reasonable cost and in a transparent manner to the underbanked population of India, as well as achieve sufficient returns on investment in order to attract capital. As of March 2010, Equitas reports to the Microfinance Information Exchange (MIX) assets of USD 165 million, a gross loan portfolio of USD 134 million, 888,600 active borrowers, return on assets of 4.5 percent and return on equity of 12.38 percent.
About IFMR Capital: IFMR Capital, previously known as IFMR Trust Guarantee Company, is a non-banking finance company based in Chennai, India. It aims to provide access to capital for institutions in sectors such as rural and urban financial services, municipalities, rural small and medium-enterprises, rural infrastructure and agriculture.
By Diana Baide, Research Assistant
[1] My Digital Financial Chronical: “Equitas securitises Rs 100 crore loan” by Sanjay Vijay Kumar, 4 October 2010
http://www.mydigitalfc.com/equity/equitas-securitises-rs-100-crore-loan-237
MicroCapital’s Microfinance Universe profile: Equitas Microfinance India Private Limited
MicroCapital’s Microfinance Universe profile: IFMR Capital
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital
Browse the MicroCapital Universe and add your entry to the wiki at:
https://www.microcapital.org/microfinanceuniverse/
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