Home Credit India completes second two-wheeler loan securitisation, raises Rs. 453 mn

ANI | Updated: Nov 07, 2017 16:57 IST

Gurugram (Haryana) [India], Nov. 7 (ANI-NewsVoir): Home Credit India Finance Pvt. Ltd., one of India's fastest growing non-banking financial company (NBFC) and part of Home Credit Group B.V., has raised Rs. 453 million in another unique two-wheeler loan securitization transaction.

This is the second successful two-wheeler loan securitization deal done by the Indian arm of Home Credit Group this year.

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.

"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. Further, the successful 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," said CFO, Home Credit India, Mariusz Dabrowski.

"We are committed towards creating a stable and inclusive domestic financial system by providing efficient and reliable access for high quality originators. 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," said CEO, IFMR Capital, Kshama Fernandes.

In July, Home Credit India had raised Rs. 413 million in a first-of-its-kind 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 and similar other investors.

Home Credit Group is developing its footprint in Asia's fast-growing, high-potential markets and in the U.S., while maintaining its role as a market leader in Central and Eastern Europe and CIS.

Its distinctive business model of providing consumer finance products which are easily accessible even at the lower end of the economic scale is a formula which has been successfully rolled out in China, India and South East Asia.

Home Credit Group has developed both bricks-and-mortar and online distribution that makes it very attractive to manufacturers and retailers who are seeking a consumer finance partner. This in turn supports the rapid development of Home Credit's loan portfolio. (ANI-NewsVoir)