Satin Creditcare Completes First PTC Transaction with HSBC India, Secures INR 119.12 Crore

Satin Creditcare Network Limited (SCNL), one of India's leading microfinance institutions has announced the successful closure of its first Pass-Through Certificate (PTC) transaction with HSBC India. The transaction, valued at INR 119.12 crore, was concluded with a coupon rate of 9.30%.

This PTC deal aligns with SCNL's broader strategy to expand its funding base and optimize its capital structure while reinforcing its dedication to financial inclusion. By leveraging securitization, SCNL is not only accessing new sources of capital but also improving its liquidity position, which is crucial for scaling its outreach to micro-entrepreneurs across India.

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.

Speaking on the transaction, Mr. HP Singh, Chairman cum Managing Director of Satin Creditcare, said, "We are delighted to have successfully completed our first PTC transaction with HSBC India. Our association with HSBC India has been a long-standing and valued partnership and this recent transaction marks a significant extension of our relationship. This does not only demonstrate Satin's commitment to innovative financial solutions but also strengthens our efforts to drive financial inclusion and empower underserved communities across India. I look forward to building on this foundation and exploring more opportunities together."

Shares of Satin Creditcare Network Limited was last trading in BSE at Rs. 210.65 as compared to the previous close of Rs. 210.30. The total number of shares traded during the day was 10193 in over 276 trades.

The stock hit an intraday high of Rs. 212.70 and intraday low of 209.25. The net turnover during the day was Rs. 2145303.00.

Source : Equity Bulls

Keywords

SatinCreditcareNetwork INE836B01017 PassThroughCertificate HSBCIndia Microfinance SuccessfulClosure