Professional Documents
Culture Documents
IFMR Trust has a mission of ensuring that every individual and every
enterprise has complete access to financial services. We are a team of
about 100 people with skills across the spectrum of commercial banking,
microfinance, structured finance and private equity, all driven by the
common belief that well-functioning financial markets and universal access
to finance is fundamental for economic development.
Agenda
1
Who are we?
2
What do we do?
3
Our People
4
What we offer?
5
What are we looking for?
Who are we?
About IFMR Capital
• IFMR Capital is a financial institution mentored by Dr. Nachiket Mor in 2008
• Our objective is to provide liquidity and develop access to debt capital markets to institutions
that impact poor households like
¾ Rural and urban micro finance institutions
¾ Small and medium enterprises
• We aim to link these institutions with capital markets and built microfinance as a new asset
class.
• We are pioneers in rated securitization of micro-loans. We did the first rated securitization of
micro finance assets earlier this year and are currently working on what could be the first
rated multi originator securitization in the country.
2
Debt Syndication ¾ Providing debt syndication to Microfinance
institutions
3
SME Lending ¾ Bill refinancing & sub-debt financing to micro
enterprises
FLDG
(from MFI)
Repayment Repayment
cash flows cash flows
MFI Special
(originator) Purpose Investors
Vehicle
Funds Funds
Assigns and SLDG
maintains rating
for the portfolio
• IFMR Capital conducts detailed due diligence on
the MFI, which involves an in-depth analysis of
quality of management, operations, systems, and
financial performance.
• The PTCs are typically rated by Crisil
Rating Agency
Case Study: Equitas Microloan Securitisation
First rated securitisation of micro-loans (March – 09)
Cash
Collateral
(FLDG by Equitas:
11.7% of principal)
Securities with
Portfolio of periodic principal
microfinance and interest
loans payments
Special AA senior Notes
Equitas Micro (80%, purchased by
Finance Purpose bank)
Vehicle
Rs. 16 crore Rs. 16 crore
BBB junior notes
(20%, purchased by
Credit enhancement IFMR Capital)
Assigns and
Senior note maintains rating
• Cash collateral by the MFI for the portfolio
• Junior note fully subscribed by
IFMR Capital
• EIS provided by IFMR Capital CRISIL
Junior note
• Cash collateral by Equitas
Case Study: Multi originator Securitization
First rated securitization of multiple originator micro-loans (Nov – 09)
Cash
Liquidity
Collateral
tranche
Securities with
Portfolio of periodic principal
microfinance and interest
loans payments
Special AA senior Notes
MFI 5 Purpose (targeted at banks)
MFI 4
MFI 3 Vehicle BBB junior notes
MFI @ Rs. 40 crore Rs. 40 crore
MFI 1 (held by IFMR Capital)
2
Risk Management • Modeling credit risk and prepayment risk
3
Private Wealth
• Modalities of building this asset class with private
investors
4
Structuring • Structuring live-deals
5
New Models of • Feasibility of revolver form of securitisation
Securitisation
What are we looking for?
If you have…
• Belief in our mission
• Enterprise and creativity
• Analytical bend of mind
• Good communication skills
• Flexibility in terms of travel and location
• Ability to work across multiple teams
IFMR Mezzanine Finance
Agenda
1
IFMR Mezzanine Finance
2
Products, Structures & Clients
3
Team
4
Offer
5
What are we looking for?
IFMR Mezzanine Finance
IFMR Mezzanine Finance
• IFMR Mezzanine Finance (Mezz Co) is being set up as a wholly
owned subsidiary of the IFMR Trust.
– Initial capital base of Rs. 200 million
– In advanced stages of acquiring a NBFC
– Will commence business towards the end of October 2009
• The main objective of Mezz Co is to strengthen the delivery of
financial services to rural households and urban poor by making
investments in local financial institutions such as Microfinance
Institutions
• Mezz Co will
– Provide medium to long term capital to MFIs to enable them to grow
– Create a new liability side instrument for local financial institutions
that will enable MFIs to meet their regulatory capital requirement
Products, Structures & Clients
Products, Structures and Clients
• Mezz Co will use quasi equity instruments such as
– Subordinated debt structures and convertible debts
– Guarantee based instruments such as First Loss Deficiency Guarantee
– Subscribe to Junior tranches in a securitization deal