LICH announcedd in a press release, "This is in close succession to the pilot of Rs 47.54 crore which was successfully placed with investors in August, 2000. The company has had a very good experience with the pilot issue which is six months old and is performing very well."

Crisil has assigned both issues an `AAA (SO)' rating which are `Class A' mortgage-backed Pass Through Certificates (PTC), backed by mortgages, originated by LICH, indicating highest degree of safety with regard to the timely payment of financial obligations on the instrument.

NHB will purchase from LICH a pool of 4,292 housing loans that constitute the receivables to be securitised. The loans will subsequently be held by a special purpose vehicle, a trust declared by NHB, and it will act as its Trustee. The individual housing loans, repayable in EMIs, will then be packaged and distributed by the SPV trust to investors as securities in the form of PTC. The loan of Rs 46.84 crore, repayable within seven years, is sold to investors in the form of PTC-A and the balance loan amounting to Rs 27.40 crore will be retained by LICH as class B PTCs.