Satin Creditcare Network Limited (SCNL), India’s leading microfinance institution, recently informed exchanges that the company successfully completed its first Pass-Through Certificate (PTC) transaction with HSBC India. The transaction, valued at Rs 119.12 crore, was completed at a coupon rate of 9.30%.
This PTC agreement aligns with SCNL’s overall objective of expanding its funding base and improving its capital structure while reinforcing its commitment to financial inclusion. SCNL is not only accessing new sources of capital through securitization, but it is also strengthening its liquidity position, which is critical for expanding its outreach to micro-entrepreneurs across India.
In the exchange filing, the company also shared, “The transaction has a par structure, where the loan pool is assigned to the trust for a purchase consideration equal to 87.5% of the pool principal. The trust will issue Series A1 PTCs for 87.5%, and 12.5% of the initial pool principal will act as overcollateralization. The deal is set to mature in August 2026, in accordance with the transaction documentation.”