Jih Sun International Bank (JSIB), the commercial banking arm of Taiwan's Jih Sun Financial Holding Company with assets of NT245.7 billion ($7.3 billion), has launched its long-awaited $118 million auto loans transaction. The deal, arranged by HypoVereinsbank (HVB) with Deutsche Bank as trustee and backup servicer, is Taiwan's first auto loans ABS and only the country's second cross-border offering.
When HVB was mandated in May (ASR, 5/17), the scheduled launch date was July, which got pushed back to August and finally September. However, the delay is no major setback given how long it normally takes for the Financial Supervisory Commission to give approval to transactions. A pool of 15,327 car loans with an outstanding balance of around NT$4.5 billion backs the transaction, which utilizes the Financial Asset Securitization Law. The weighted average interest rate on the loans is 7%, with average seasoning of 11.03 months.