Timbercorp. has originated the first securitization in Australia ultimately backed by loans funding investments into forestry plantations. Asia Pacific Receivables Corporation Ltd issued A$41.42m (US21.6m) medium-term notes via arranger Commonwealth Bank of Australia (CBA). The proceeds of these will be used to acquire the loans.
"This is the first transaction of its kind in the Australian market, and the first globally from an Standard & Poor's perspective," said Manny Arabatzis, associate director at Standard and Poor's in Melbourne. "There have been transactions which have shared some similar features, but none have involved the securitization of tax-effective agricultural investment loans. The transaction is a closed pool with a full passthrough for principal payments with value being given to the cash flows of the transaction and past performance, whilst no value was given to the land or the trees. The loans are for three, four or five years, but the trees take ten to twelve years to mature."