Microfinance Focus, September 21, 2011: IFMR Capital has recently completed its largest multi- originator securitization transaction involving 7 Microfinance NBFCs. It structured and arranged MOSEC 7, a Rs. 511 million securitisation backed by 49,881 microloans originated by Asirvad Microfinance Private Limited, Disha Microfin Pvt. Ltd, Mimoza Enterprises Finance Pvt. Ltd., Satin Creditcare Network Limited , Suryoday Micro Finance Pvt. Limited, SV Creditline Private Limited and Utkarsh Micro Finance Private Limited.

Together with MOSEC 7, IFMR Capital has also completed a Rs. 239 million single originator securitization transaction - Aether IFMR Capital 2011- with Bangalore based Grameen Financial Services Private Ltd.

IFMR Capital Mosec VII, the SPV, issued two tranches of securities rated by ICRA: 85% senior tranche rated A1-LBBB+ (SO) and Series A2-Unrated. The senior tranche has been subscribed by a Bank and HNI’s and Junior Tranche by IFMR Capital.

Aether IFMR Capital 2011, the SPV, issued two tranches of securities backed by 23,108 microloans that were originated by Grameen Koota. Non-Banking Financial Institutions subscribed to the senior ICRA A- rated tranche and IFMR Capital invested in the subordinated ICRA BB+ rated piece.

This is the eighth capital market transaction for Grameen Koota with IFMR Capital.

The originator and servicer, Grameen Koota, provides cash collateral of 10% of the pool principal, while the structurer, IFMR Capital, has invested in the subordinated junior tranche. As in the above transaction, the waterfall mechanism ensures that here, the senior investor is protected against losses up to Rs. 240 million and any first loss is borne by the originator and the second loss by the structurer.