The securitization arm of Chile's Banco de Credito e Inversiones has structured two credit card-backed, peso-denominated deals that look set to become the first such transactions in the domestic market, according to Gerardo Spoerer, CEO of BCI Securitizadora. "We expect them to come out this year," he said.
The larger of the two is worth roughly Ps70.2 billion (US$100 million) and is effectively a securitization of future debt from the holders of credit cards issued by Ripley, a Chilean department store that has been growing over the last few years. Its stores have sprawled from lower to higher income segments of the country, spurring a similar change in the makeup of cardholders. The deal is a future flow transaction of the total consumption of a set carholder pool. It is about 40% overcollateralized, which helped it garner a triple-A rating from Moody's Investor Services affiliate Humphreys and Standard & Poor's affiliate Feller Rate.