Avendus invests in micro-fin loan-backed securities

MUMBAI: In a first for any wealth management firm, Avendus Capital has invested client funds in micro-finance loan backed securities.

The issue is a Rs 369-million (Rs 36.9-crore) multi-originator micro-loan securitisation with three Indian microfinance institutions (MFIs), the company said in a press release issued here.

Microfinance papers have traditionally seen subscription from corporate treasuries, mutual funds and non-bank lenders.

"This opens up a new source of funds for MFIs and also allows Avendus' customers to have access to a new type fixed income instruments with attractive yields," the release said.

The issue was structured by Chennai based Non-Banking Finance Company, IFMR Capital.