On September 4, 2024, Satin Creditcare Network Limited (SCNL), a leading microfinance institution in India, successfully completed its first Pass-Through Certificate (PTC) transaction with HSBC India. The deal, worth ₹119.12 crore, was finalised with a coupon rate of 9.30%.
This PTC deal is part of SCNL’s broader plan to diversify its funding sources and strengthen its capital structure. Using securitisation, SCNL is accessing new funds and boosting its liquidity, which is essential for expanding its services to micro-entrepreneurs across India.
The transaction has a par structure, where 87.5% of the loan pool’s principal is assigned to a trust. The trust will issue PTCs for 87.5% of the loan value, while 12.5% will serve as over-collateralisation. The deal is set to mature in August 2026.
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.”
He further added, “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.”
Satin Creditcare Network Limited (SCNL or Satin) is one of India’s top microfinance institutions (MFIs), operating in 27 states and union territories, and reaching about 90,000 villages. Its goal is to become a leading microfinance provider by offering a wide range of products and services to communities that lack financial access. Satin also focuses on empowering women, using technology and innovation to build long-lasting, strategic partnerships. The company also provides a variety of financial products outside the microfinance sector, including loans for MSMEs and affordable housing. In April 2017, SCNL set up a fully-owned subsidiary, Satin Housing Finance Limited (SHFL), to offer loans for affordable and micro-housing.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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