Capital Trust enters in a PTC transaction amounting to Rs28cr with U Gro Capital

This is the first time U GRO Capital and Capital Trust have come together for a PTC transaction of about Rs280cr, with amortisation of the pool tenure of 20 months.

Aug 03, 2021 10:08 IST India Infoline News Service

Capital Trust Limited (Capital Trust), a digitally enabled NBFC, on Tuesday announced that it has entered into PTC (Pass-Through Certificates) transaction with U GRO Capital Limited, a technology-focused small business lending platform.

Yogen Khosla, Chairman and Managing Director, Capital Trust Limited, said, “This transaction is in line with Capital Trust’s balance sheet light business growth model and will help the company expand its lending portfolio at a faster pace without additional burden on the books of the company. The arrangement will enable Capital Trust to expand its digital lending footprint to Tier 3-5 regions primarily in Northern India. The company will continue to enter into such tie-ups in the near term which will help in building a strong capital base with high liquidity."

As per the regulatory filing, this is the first time U GRO Capital and Capital Trust have come together for a PTC transaction of about Rs280cr, with amortisation of the pool tenure of 20 months. The instrument is rated BBB+ by ICRA Limited.

The tie-up will allow Capital Trust to enhance its liquidity and build a strong capital base. The loans underlying the pool will have monthly instalments with an original maturity of up to 3 years.

With this tie-up, Capital Trust will be able to expand its credit portfolio of income-generating microloans among rural India’s underserved population.

At around 10.40 AM, Capital Trust was trading at Rs107.35 per piece down by 0.97% on Sensex. 

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity