Muthoot Capital Services (MCSL) on Monday said that it has concluded an `236-crore two-wheeler securitisation transaction. MCSL, which is primarily into auto-finance business with two- and four-wheeler financing, has a portfolio of approximately `2,600 crore with 7 lakh customers spread across 18 states, as per the financials of Q3FY19.
Thomas George Muthoot, managing director, MCSL, said that this deal is one of the largest securitisation deals in the two-wheeler finance space and the biggest securitisation transaction so far for MCSL.
READ ALSO | India’s 10 most wacky startups that aren’t like your Olas, Zomatos, Paytms, and Flipkarts of the world
HDFC-MF, the largest mutual fund in India, subscribed to the entire issuance. The underlying loan pool received an AA rating from CRISIL, a significant achievement in this asset class. The deal was arranged and structured by Vivriti Capital, which runs the largest institutional debt market platform in India. “We have always enjoyed the confidence of marquee investors including leading mutual funds who are equity investors in MCSL. The AA rating and subscription by HDFC-MF is a big validation of the inherent strength of our underwriting and servicing capabilities,” he added.
Gaurav Kumar, founder & director, Vivriti Capital, said: “The transaction size is among the largest seen in the two-wheeler financing space. We are proud to have been associated with MCSL since our inception and believe this is an important milestone in our approach of linking investors and high-quality issuers through our debt market platform. The AA CRISIL rating that the transaction got and the on-boarding of a name no less than HDFC MF is a confirmation of the high quality of the pools that were securitised by MCSL over the last 2-3 years.”