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Press Release


Home Credit Group's India Arm Completes First Two-wheeler Loan Securitisation, Raises INR 413 Million

- DCB Bank, IFMR Capital Investors in the Issue

- Senior Tranche of Issue Rated A – (SO) by CRISIL

Gurgaon, August17, 2017: Home Credit India Finance Pvt. Ltd, one of India's fastest growing non-banking financial company (NBFC) and part of Home Credit Group B.V., has concluded an innovative two-wheeler loan securitization transaction and raised INR 413 million. This is the first-of-its-kind two-wheeler loan securitization deal done by Home Credit India.

The issue has been subscribed by DCB Bank and IFMR Capital. As part of the transaction, the special purpose vehicle (TULMUL IFMR Capital Trust 2017) issued two tranches of pass through certificates which were subscribed by DCB Bank and IFMR Capital. The senior tranche of the issue has been rated A – (SO) by CRISIL. IFMR Capital Finance Private Limited is the arranger for the issue.

Speaking on the transaction, Mariusz Dabrowski, Chief Financial Officer, Home Credit India said, "It is a landmark transaction for us and paves the way for many more similar deals in future. As Home Credit completes five years of operations in India and the domestic securitization market evolves, we increasingly plan to tap innovative instruments to raise funds. Above all, the successful completion of the issue reflects the confidence that DCB bank and IFMR Capital have shown in us and we intend to continue this relationship with them as well with other investors in future."

According to Kshama Fernandes, CEO, IFMR Capital," The Indian securitization market offers significant opportunities for corporates, especially NBFCs, to raise funds through various innovative and cost effective financing instruments. We are happy to partner with Home Credit India for this landmark transaction, and believe this is an important milestone in our approach of building long-term access to optimal debt solutions in India."

On partnering with Home Credit India, Murali M. Natrajan, Managing Director &CEO, DCB Bank said, "DCB Bank is delighted to be associated with Home Credit and we hope our investment in the loan securitization transaction is a beginning of a long and mutually beneficial business relationship."

Loan securitisation is a process in which the underlying pool of assets are structured or packaged and sold as financial instruments to investor(s) either directly or through a special purpose vehicle. Typically in India, the originators or sellers are banks, non-banking finance companies, housing finance companies & similar other investors. The underlying assets are mainly secured loans like housing loans, auto loans, commercial vehicle loans, construction equipment loans, two-wheeler loans, tractor loans, three-wheeler loans and unsecured loans like personal loans, consumer durable loans.

Home Credit India has been at the forefront of redefining customer experience through innovative products and services. The company recently launched a one of its kind online Mini Cash Loan product across the country. In May, the company launched a Mobile App that provides customers access on the go to his/her loan details, repayment schedule and information on the due amount.

Home Credit Group is developing its footprint in Asia's fast-growing, high-potential markets and in the U.S., while maintaining its role as a market leader in Central and Eastern Europe and CIS. Its distinctive business model of providing consumer finance products which are easily accessible even at the lower end of the economic scale is a formula which has been successfully rolled out in China, India and South East Asia. Home Credit Group has developed both bricks-andmortar and online distribution that makes it very attractive to manufacturers and retailers who are seeking a consumer finance partner. This in turn supports the rapid development of Home Credit's loan portfolio.

About Home Credit India:

Home Credit India Finance Pvt. Ltd. is a leading consumer finance provider that is committed to drive credit penetration and financial inclusion by offering financial solutions that are simple, transparent and accessible to all. One of India's leading Non-Banking Financial Companies (NBFCs), Home Credit India has its operations in 77 cities across 15 states in the country. The company has a strong network of over 10,000 Points-of-Sale (PoS) where it services nearly 3 million customers through an employee base of over 16,000 as of date. Home Credit India has been recognized by Aon Hewitt as a Regional AON Best Employer 2017 for employer excellence.

About Home Credit Group B.V.:

Home Credit India is part of Home Credit B.V.,an international consumer finance provider with operations in 11 countries where there is high potential to grow. Founded in 1997, we focus on responsible lending primarily to people with little or no credit history. Our services are simple, easy and fast. We operate in highly attractive markets with significant barriers to entry. We are a leading provider of consumer finance in selected countries. It is our experience and knowledge across the different markets, which sustainably puts us ahead of our competitors. We drive and broaden financial inclusion for the unbanked population by providing a positive and safe borrowing experience – the first for many of our customers. We promote higher living standards and meet borrowers' financial needs. Our 135,500 employees have so far served over 76 million customers through the vast distribution network comprising 308,703 points of sale, loan offices, branches and post offices. HCBV's total consolidated assets reached EUR 15.9 million as at 31 March 2017.
More information on Home Credit India is available at www.homecredit.co.in
More information on HCBV is available at www.homecredit.net

For more information, contact:
Sankalp Saini
Communications & PR
Home Credit India Finance
Sankalp.saini75434@homecredit.co.in