Mumbai: Sachin Bansal-led digital non-bank lender Navi Finserv Ltd on Thursday mentioned it has raised ₹163 crore in a securitization transaction with Citi India and Northern Arc.
The PTC (go by certificates) transaction is Navi’s first AAA-rated securitization within the private loans area. As per the assertion, it additionally marks Citi India’s inaugural securitized publicity to digital lending gamers in India.
Previously 16 months, Navi Finserv has accomplished greater than 30 private mortgage securitization transactions of over ₹3,400 crore with a number of traders throughout banks and NBFCs.
Citi India acted because the senior investor within the transaction and Northern Arc was the subordinate investor and the backup servicer. The funds from this transaction might be used to advance loans to Navi’s clients, Navi mentioned in an announcement.
“Navi is proud to grow to be part of the celebrated AAA membership. We’re assured that this transaction’s success will unlock contemporary avenues of financing and can broaden our investor base even additional,” mentioned Sachin Bansal, co-founder, Navi Group.
Ok. Balasubramanian, managing director and head of company financial institution for Citi in South Asia protecting India, Bangladesh, and Sri Lanka mentioned that the deal is exclusive, with robust built-in structural options that helped the transaction obtain the very best score.
“Moreover being Citi India’s first securitization inside the private loans asset class, that is additionally our first securitized lending to an Indian digital lending consumer,” mentioned Balasubramanian.
In the meantime, Ashish Mehrotra, managing director and chief government officer of Northern Arc Capital, mentioned the transaction’s construction reduces the inherent danger of funding and is backed by Northern Arc’s robust underwriting and danger administration.
“So far, Northern Arc has led greater than 1,600 securitization transactions aggregating to over ₹50,000 crore, solidifying our dominance amongst home and worldwide traders, together with overseas banks,” mentioned Mehrotra.
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Up to date: 24 Aug 2023, 08:25 PM IST
Supply: Live Mint