Singapore's most active issuer, property developer CapitaLand, has tapped the market for the third time this year, establishing a new benchmark for cross-border deals from the Lion City in the process. Having put together all CapitaLand's previous ABS deals, HypoVereinsbank was again appointed lead manager for the latest $155.6 million offering.

The transaction is backed by sales of units in two yet-to-be completed residential apartment blocks - Botanic on Lloyd and The Imperial - both of which are located in the center of the city-state.

Under the terms of the deal, CapitaLand sold the rights of receivables to an onshore SPV - Arwen Investment Corp. - for S$243 million ($143.2 million) upfront and a deferred payment of S$111.7 million. About 73% of the units have already been sold for a combined value of S$305.9 million, with the value of unsold units at S$110.3 million. The remaining construction costs are estimated to be $92.7 million. To cover any cost overrun, HVB will provide a construction facility worth S$30.6 million.

The $126 million A1 tranche, rated AAA' by Fitch Ratings, priced at 35 basis points over Libor. That is seven points inside the previous lowest spread, coincidently achieved by CapitaLand on its $341 million CMBS deal in March. The $17.8 million of double-A paper came in at 60 basis points, while the $11.8 million single-A piece offers 90 basis points.

In the past couple of years, offshore investor appetite for deals backed by Singaporean property assets has grown markedly and spreads have narrowed as a result. Only 6.7% of CapitaLand's current deal was placed in Singapore, with 81.1% going to European buyers and 13.2% to U.S. clients. In total, 15 investors bought into the transaction.

As for investor type, 46.8% were banks, 20.1% funds, 13.2% conduits, and 13.2% asset managers, with the remaining 6.7% absorbed by insurance companies.

Meanwhile, over in Korea, Standard Chartered is putting the finishing touches on an auto loan deal for the consumer finance company Hyundai Capital. The transaction, believed to be around $200 million in size, will be split into a one-year fast-paying tranche and two-year bonds. A banker familiar with the issue - which will be sold into Standard Chartered's own conduit - said price talk for the one-year notes is around 29 basis points over Libor and 10 points wider for the two-year tranche.

This is the third auto loan deal from Hyundai Capital, following a $160.1 million public deal via JPMorgan in March 2002 and a $200 million private placement arranged by Banc One 12 months later. The 1.3-year JP-led deal priced at 33 over Libor.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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