Structuring group; IFMR Capital

Abstract

The internship programme was started with an induction at IFMR Capital's Chennai office in first week of April and the programme lasted for around nine weeks. I was given the opportunity to work on two projects. The projects were predominately with the structuring and legal desk of IFMR Capital. It also required good understanding of the microfinance sector. The assignment covered areas of asset backed securitization and India's legal framework for securitization. Most of the time during the internship was spent on the project 'Feasibility of revolving form of securitization'. The internship also involved a feasibility study of using financial guarantee (monoline insurance) as . a form of credit enhancement for microloan backed securities. The work involved developing a completely new securitization structure for microloan backed securities. Currently, revolving structure of securitization does not exist in India. Therefore, the work required a detail study of Indian legal framework and rating rationale for securitization to check the feasibility of the structure. I was also involved in preparing the structure note and term sheet of the structure and also in the conversation with legal firm. Apart from the projects, the induction programme, knowledge sessions and interaction with seniors added insights to the internship learning experience. These sessions provided platform to understand more about microfinance sector and structured finance in general. My experience has been fantastic and the learning experience has been very enriching. I believe that the amount of learning in these 9 weeks has been far more than I had expected when I had begun.