Standard Chartered Bank is rumored to be involved with HSBC Securities on the Singapore-originated securitization of loans to small and medium-sized companies based in the Lion City. ASR recently reported HSBC is working with SPRING, the Singaporean SME agency, on warehousing loans before securitizing them at a later date, with any deal subject to approval from the Monetary Authority of Singapore. Other names linked with this project now include Barclays Capital and Maybank, but details on who will be doing what are somewhat cloudy.
On the same theme, a private-sector initiative called Action Crucible for Financing is also trying to promote securitization as a means of raising funds for SMEs in the city-state. The group is believed to be recruiting banks for a two-part scheme. Securitizing loans already on bankbooks would be the first option; structuring a CLO or CBO offering would an alternative.