Chennai-based NBFC IFMR Capital expects to do over Rs 1,000 crore worth of securitisation transactions in the microfinance space in financial year 2010-11, a top official said.

IFMR Capital, one of the three subsidiaries of IFMR Trust, aims to provide liquidity and access to debt for institutions with rural focus, including microfinance institutions and small and medium enterprises. It would use financial tools such as repackaging, securitisation and credit enhancement to tailor products that match the risk profiles of investors, thus facilitating access to domestic and international markets.

For smaller institutions, IFMR Capital is looking to pool portfolios from three or four institutions, in order to make the capital markets accessible to these institutions while keeping the transaction sizes attractive for investors.

The company has so far done six transaction worth Rs 300 crore and aims to cross over Rs 1,000 crore by end of March 2011.

“We have a strong pipeline from existing clients, with whom we have built deep relationships. Increasing product suites to cater to both on-balancesheet and off-balancesheet financing needs of clients, as well as meet specific requirement of key investor classes such as private wealth investors,” Sucharita Mukherjee, chief executive officer of IFMR Capital told Financial Chronicle.

Securitisation is the process through which financial institutions will be able to pool the receivables from loans and sell the same to third parties like banks, mutual funds and insurance companies. This is the most common practice by which non-banking finance companies raise money.