AEON Thana Sinsap, the Thai subsidiary of Japanese consumer finance company AEON Credit Service, last week priced its third ABS.
Citigroup Global Markets is handling the sale of the THB2.3 billion ($57.4 million) credit card offering, with investor allocations due to be settled on Feb. 6.
The transaction, issued from the Eternal 3 special purpose vehicle, includes two senior tranches rated triple-A by Fitch Ratings. The THB1 billion ($26 million) of three-year paper carries a fixed coupon of 5.73%. The THB1 billion of five-year bonds offers 5.88%.
Two subordinated five-year tranches also priced. The AA-rated THB120 million ($3.1 million) piece will pay 6.13%. The THB160 million ($4.1 million) A-rated notes offer 6.33%.
At press time, three and five-year government bonds were yielding 4.98% and 5.17%, respectively.
Citigroup also arranged Aeon's last ABS, a THB2 billion ($52 million) deal in February 2005 (ASR, 2/21/05) that featured three and five-year senior tranches paying 70 and 85 basis points over government bonds.
In other news, China's Huaneng Power International has received approval from shareholders to proceed with a RMB15 billion ($1.86 billion) ABS program and a RMB5 billion ($620 million) offering of short-term debentures (ASR, 1/16/06).
Huaneng, one of China's largest independent power companies, wants to use securitization to finance new acquisitions, viewing it to be a cheaper source of funding than bank loans. Some analysts say the ABS program could save the company as much as RMB200 million ($24.8 million).
Hopeful arrangers may have to wait several months to pitch proposals. Huaneng's target deadline to complete the deal is the first quarter of 2007.
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