IFMR Capital
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IFMR Capital

IFMR Capital (earlier IFMR Trust Guarantee Company) is structured as a registered non-banking financial company (NBFC) based in Chennai. Its mission is to provide efficient and reliable access to capital for institutions that impact low-income households.

IFMR Capital's objective is providing liquidity and developing access to debt-capital markets for critical sectors such as:

  • rural financial service providers
  • urban financial service providers that focus on low-income households
  • municipalities
  • rural infrastructure
  • small and medium enterprises in the rural sector
  • agriculture, low-cost housing, and other sectors relevant to low-income households in both urban and rural areas

IFMR Capital will meet its objective through multiple strategies:

  • Identifying good-quality underlying portfolios and achieving diversification via pooling of risks across various sectors and geographical locations
  • Structuring debt to achieve efficient pricing; for instance, priority sector eligible assets for Indian bank investors, investment grade securities with a formal credit rating for fund investors
  • Using 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

Further, IFMR Capital plans to develop markets for new asset classes by:

  • Setting market standards for microfinance loan-backed securities, municipal financing instruments and project finance bonds
  • Developing a sound theoretical pricing framework
  • Designing rating methodologies for new asset classes and structures with rating agencies
  • Providing liquidity by making two-way markets in municipal bonds, structured finance securities and related CDS
©2008 IFMR Trust. All Rights Reserved.
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