Muthoot Capital inks Rs 236 cr securitisation deal

Mumbai, March 18 (IANS) Muthoot Capital Services Ltd (MCSL), the non-banking finance company (NBFC), here on Monday announced conclusion of a Rs 236 crore two-wheeler securitisation deal with HDFC Mutual Fund (HDFC-MF)."This deal is one of the largest securitisations deals in the two-wheeler finance space and the biggest securitisation transaction so far for MCSL," a company statement said."HDFC-MF subscribed to the entire issuance. The underlying loan pool received from Crisil an AA rating, a significant achievement in this asset class," it said.Muthoot Capital, the micro-financing arm of the Muthoot Pappachan group, is primarily into auto-finance business.Securitisation refers to transactions wherein a lender sells a portfolio of future receivables, and has recently become a preferred mechanism for NBFCs to raise funds. Muthoot Capital has a portfolio of around Rs 2,600 crore with 7 lakh customers, spread across 18 states, the statement added.
--IANS ravi/rtp/pcj