BRAC one of the largest microfinancial institutions with over 5mn borrowers and 100,000 employees has closed a landmark securitization deal structured by RSA Capital, Citigroup, FMO and KfW. This deal is denominated in Bangladesh Taka (BDT) and will provide a total of 12.6bn BDT over the course of 6 years. BRAC will receive 1bn BDT (US$15mn) financing every 6 months totalling US$180mn over 6 years. Read BRAC’s press release here
The microfinance industry continues to tap resources from the capital markets. This year 2 large CDOs were launched US$100mn by BlueOrchard Finance S.A. and a US$60mn by Development World Markets. Pure microcredit securitization deals have so far been very few.