Despite the struggles of Korea's two biggest credit card companies to stay afloat, there seems to be no problem raising money through the securitization markets. After it emerged earlier this month that Merrill Lynch is arranging a second deal for LG Card - estimated to be between $300 million and $400 million - reports have surfaced that Samsung Card has appointed JPMorgan Securities as lead manager for its latest offering.

While no details have emerged on how big the issue will be or when it will be launched, Samsung's appetite for funds will puzzle some. The company also managed to secure a $300 million credit facility with Royal Bank of Scotland in the past month.

Samsung surprised many bankers in March, when it achieved a spread of 30 basis points over Libor on its $300 million three-year offering via ING, which most believe was placed into an ING conduit (see ASR 4/4/05). This set a new benchmark for Korean credit card ABS, despite coming only weeks after the company was saved by a W1.2 trillion ($1.2 trillion) bailout from its main shareholders, including Samsung Electronics.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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