MICROCAPITAL BRIEF: India’s IFMR Capital Pools Loan Assets from 8 Microfinance Institutions, For Trading on Bombay Stock Exchange

IFMR Capital, an affiliate of the Indian nonprofit Institute for Financial Management and Research (IFMR), a private trust that aims to provide Indian enterprises with access to financial services, recently listed a securitized debt instrument on the Bombay Stock Exchange that pooled loan assets from eight microfinance institutions (MFIs). According to Kshama Fernandes, the CEO of IFMR Capital, “A small or medium MFI typically finds it difficult to provide a portfolio large enough to be taken to the capital markets.  By pooling loans from multiple MFIs, it is possible to reach a critical portfolio size that can then be of interest to a mainstream investor.” The eight MFIs and the value of the pooled loan assets were not disclosed.

By Lena Phillips, Research Associate

About IFMR Capital
IFMR Capital is a subsidiary of IFMR Trust, a private trust that aims to provide Indian enterprises with access to financial services. IFMR Capital’s goal is to provide liquidity and debt capital to the microfinance industry and other sectors that offer products and services for low-income households. IFMR Trust is an affiliate of the Indian nonprofit Institute for Financial Management and Research (IFMR), a Chennai-based research and educational institution.

Sources and Additional Resources:

TheEconomicTimes.com Article, by Suraj Sowkar, “In a first, securitized debt listed for trading on BSE”, http://articles.economictimes.indiatimes.com/2013-01-15/news/36353114_1_loan-assets-microfinance-institutions-microfinance-companies

MicroCapital.org Article, 17 December 2012: “MICROCAPITAL BRIEF: SKS Microfinance of India Completes $10m Securitization, Stock Reaches 52-Week High”, https://www.microcapital.org/microcapital-brief-sks-microfinance-of-india-completes-10m-securitization-stock-reaches-52-week-high/#more-21651

MicroCapital.org Article, 29 August 2012: “MICROCAPITAL BRIEF: Asian Development Bank, IFMR Capital to Guarantee $27m in Loans from Ratnakar Bank to Microfinance Institutions in India”, https://www.microcapital.org/microcapital-brief-asian-development-bank-ifmr-capital-ratnakar-bank-provide-partial-credit-guarantee-for-loans-to-microfinance-institutions-in-india/#more-19971

MicroCapital Universe Profile: IFMR Capital, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital

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