Korean consumer finance company Hyundai Capital last week sent out request for proposals (RFPs) for its latest cross-border ABS foray. Hyundai has invited banks to pitch on a $300 to $350 million equivalent auto loan securitization.
The deal, which may be sold in euros, will be the borrower's first offering this year. Although the exact make-up of the RFP list has not been released, most expect Calyon Securities, HSBC and Standard Chartered to be leading candidates. All three are extremely competitive on pricing Korean cross-border transactions.
Hyundai's return is particularly good news for ABS arrangers who feared the company would pursue plain vanilla debt options following a rating upgrade late last year.
More optimistic market watchers suspected that was unlikely, highlighting how cross-border ABS provides a highly competitive cost of funding. Hyundai's most recent securitization - a 330 million auto loans arranged by ING last December - priced at 15 basis points over Euribor on a three-year maturity (ASR, 01/09/06).
As with its debut in June 2005 (ASR, 06/13/05), SICCO's upcoming THB3 billion ($78.5 million) offering will be jointly led by Standard Chartered and Siam Commercial Bank. The latter holds a 39% interest in SICCO.
The new deal - sold through the SICCO Two SPV - is backed by a pool of 9,990 contracts worth THB3.9 billion, equal to 22.5% overcollateralization. Sicco will replicate the structure used on its debut, whereby assets will be sold on a revolving basis to the SPV for 1.5-years, followed by controlled amortization until maturity.
In China, Jiangsu Expressway Co. announced last week its plans to sell RMB4 billion ($499.9 million) of bonds backed by toll-road receivables. The company said it would be submitting its plans to shareholders for approval in September.
Jiangsu Expressway operates the Shanghai-Nanjing highway, linking the capital of Jiangsu Province with China's largest city.
If approval is granted by shareholders and the China Securities Regulatory Commission, it will be the third toll-receivables ABS from China following Dongguan Development's RMB580 million offering last December and Pudong Road & Bridge Construction's RMB425 million transaction that closed in June.
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