ABN Amro priced its SMILE 2007 - a 4.9 billion ($6.4 billion) true sale cash securitization of Dutch loans to small and medium-sized enterprises (SMEs). The transaction is the third SME loan securitization under the SMILE program
The transaction follows the 6.75 billion synthetic SME transaction in 2005 (SMILE 2005) and combines certain synthetic aspects of the 2005 deal with the strengths of a true sale cash securitization. "The securitization program is a next step in our capital management," said Hugh Scott-Barrett, ABN Amro's chief financial officer. "With this transaction, we will reduce regulatory and economic capital in a very efficient way while transferring part of the credit risk on the Dutch SME loan book."