o DCB Bank, IFMR Capital Investors in the Issueo Second successful two-wheeler loan securitization deal this year
Gurgaon, November 7, 2017: 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 INR 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.
Speaking on the transaction, MariuszDabrowski, Chief Financial Officer, Home Credit India said, “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.”
According to Kshama Fernandes, CEO, IFMR Capital, “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.”
In July, Home Credit India had raised INR 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 & 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.
About Home Credit India
Home Credit India Finance Pvt. Ltd. is a leading consumer finance provider that is committed to drive credit penetration and financial inclusion by offering financial solutions that are simple, transparent and accessible to all. One of India’s leading Non-Banking Financial Companies (NBFCs), Home Credit India has its operations in 89 cities across 19 states in the country.
More information on Home Credit India is available at www.homecredit.co.in
More information on HCBV is available at www.homecredit.net
For more information, contact:
Vandita Kaul
Head – Treasury
Home Credit India Finance
In_treasury@homecredit.co.in