Hoping for a smooth political and economic transition after the October 24 presidential elections, Argentine bank Bansud is working on a $50 million securitization of auto loans.
According to sources, the bank has a pool of high-quality assets and is aiming its offer at local pension funds. "Pension funds in Argentina have not invested much throughout this year," explained Juan Pablo de Mollein from Standard & Poor's Argentina office. "That will make them very receptive for this and other deals that might come to market next month."
The transaction, Bansud's first asset-backed deal, could help jump-start other auto loan securitization plans. Currently, there are two outstanding $30 million auto loan securitizations in the local market, one from MBA Inversiones S.A. and Banco De Liniers Sudamericano and the other from the now bankrupt Banco Israelita de Cordoba. "The auto loan market has become increasingly competitive," said Mollein. "As a result, the largest players dominate the sector. And most of those large players are not very open to securitization as a financial alternative yet."
Other issuers are awaiting the election in order to launch deals. Citibank Argentina and HSBC Roberts, for example, are planning CBO transactions said to be worth between $50 million and $75 million.