Sachin Bansal’s Navi Finserv raises ₹163 crore in securitization transaction with Citi, Northern Arc

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₹163 crore in a securitization transaction with Citi India and Northern Arc. The PTC (pass through certificate) transaction is Navi’s first AAA-rated securitization in the personal loans space. As per the statement, it also marks Citi India’s inaugural securitized exposure to digital lending players in India.

In the past 16 months, Navi Finserv has completed more than 30 personal loan securitization transactions of over ₹3,400 crore with multiple investors across banks and NBFCs. Citi India acted as the senior investor in the transaction and Northern Arc was the subordinate investor and the backup servicer. The funds from this transaction will be used to advance loans to Navi’s customers, Navi said in a statement.

“Navi is proud to become a part of the prestigious AAA club. We are confident that this transaction’s success will unlock fresh avenues of financing and will expand our investor base even further," said Sachin Bansal, co-founder, Navi Group. K.

Balasubramanian, managing director and head of corporate bank for Citi in South Asia covering India, Bangladesh, and Sri Lanka said that the deal is unique, with strong built-in structural features that helped the transaction achieve the highest rating. “Besides being Citi India’s first securitization within the personal loans asset class, this is also our first securitized lending to an Indian digital lending client," said Balasubramanian. Meanwhile, Ashish Mehrotra, managing director and chief executive officer of Northern Arc Capital, said the transaction’s structure reduces the inherent risk of investment and is backed by Northern Arc’s strong underwriting and risk management.