Khaitan & Co advised one of the Investors (Investor) in connection with one of India’s largest asset backed securitisation issuances, involving investment in pass through certificates (PTCs), backed by securitised receivables aggregating up to INR 21,000 crores, issued by three trusts, namely, Radhakrishna Securitisation Trust, Shivshakti Securitisation Trust and Siddhivinayak Securitisation Trust and listed on the BSE and NSE. The securitised receivables comprised of loans to Digital Fibre Infrastructure Trust (DFIT) by the originators, namely, Jamnagar Utilities & Power Pvt Ltd and Sikka Ports & Terminals Ltd and the receivables under the put/call option obligations of Reliance group entities, namely, Reliance Industries Holding Pvt Ltd, Srichakra Commercials LLP, Karuna Commercials LLP, Devarshi Commercials LLP and Tattvam Enterprises LLP, in relation to the DFIT loan pursuant to the option agreements.
The PTCs also have a credit support from the retained interest of the originators, which retained interest is subordinated up to 2x coverage (of the uncovered portion from redemption proceeds on the PTCs payable by DFIT). The transaction was arranged by Barclays Bank Plc.
The core team consisted of Manisha Shroff (Partner), Riya Bhattacharjee (Partner), Siddarth Goel (Senior Associate), Gyana Pathak (Associate) and Arihan Bothra (Associate).