The Chilean summer is winding down and dealmakers are back in force. ABN Amro Securitizadora is aiming to run a credit card deal through the market in mid-April - its first foray into this still-emerging asset class - according to a source on the deal. The transaction is backed by receivables stemming from purchases made through Salud Matico (literally "health-matic") credit card. Originated by Matic Kard, the deal is sized at a total Ps10.5 billion (US$17.4 million). ABN structured the paper in pesos, while the fixed costs - such as servicer fees and other administrative expenses - are denominated in inflation-indexed units (U.F.). A projected credit enhancement of 27%, largely from excess spread, helps mitigate the risk of rising inflation. Fitch Ratings and Moody's Investors Service affiliate Humphreys have rated the senior tranche of the transaction AA' on the national scale. Sized at Ps8.4 billion (US$14 million), the senior tranche has a legal final maturity of six years.
At launch, the underlying pool is expected to represent roughly 177,454 cardholders, with an average debt of Ps60,100 (US$100) and average term of 4.5 months. The rate charged card users has oscillated between 22% and 27% over the last two years. Apart from being ABN's first push into credit cards, the deal marks a market debut for Matic Kard. The card is used for pharmaceutical goods, cash advances and services at selected clinics.