South Africa - The International Finance Corp., the World Bank affiliate that acts as a source of loan and equity financing for private sector projects in the developing world, last week bought a 10% share in South African secondary mortgage and securitization company SA Home Loans.
Japan - Japan will see its first domestically-placed public residential mortgage backed security towards the end of April in a deal from Fuji Bank worth 32.9 billion ($313 million). The deal, which is being arranged by Fuji Securities, comes after the first successful residential MBS, which was issued by Sanwa Bank in 1998 and placed internationally, and a recent privately placed, domestic residential mortgage deal from Orient Corp.
Japan - Sakura Trust & Banking Co. has developed a new payment collection system designed to minimize one of the most intractable problems facing the Japanese securitization market. The company has developed the new system in an attempt to mitigate so-called co-mingling risk, which is the risk that in the event of a servicer's bankruptcy receivables will be frozen in its bank account before it has passed them on to the deal's trust or SPC.
Korea - KDB Capital, the leasing arm of the state-owned Korean Development Bank, recently became the first issuer to securitize onshore South Korean assets in the international markets without any external credit support, raising $101 million via arranger and underwriter Credit Lyonnais.
Tokyo - A CBO backed by loans made to 1,671 small and medium sized enterprises in Tokyo was closed at the end of March, in a deal worth 67.99 billion ($647 million) and rated AA-plus by Japan Rating & Investment. The deal, called Prestar Asset Fund-ing, was arranged by Fuji Securities and pricing was set at 1.13% for the April 2003 bullet-type notes.
Italy - Telecom Italia recently awarded BNP Paribas and West LB the mandate to structure a possible E4 billion ($3.8 billion) securitization program and to underwrite the first issue. If the project is successful, TI would be the first European telecoms company to try its hand in the asset-backed market.
Italy - Italian bank Cassa di Risparmio della Provincia di Chieti (CariChieti) recently launched its debut securitization, in a deal backed by performing mortgages and non -performing loans. Caboto, a wholly owned subsidiary of Banca Intesa, acted as lead manager for the E53 million ($50.4 million) transaction, called Creso 1. The transaction was the first securitization of performing mortgages to be completed under the new Italian securitization law.
United Kingdom - Peverel Properties, the U.K. sheltered housing builders, recently launched a GBP103 million ($164 million) securitization, backed by property ground rents on Peverel's portfolio of 25,000 sheltered housing flats and 12,600 ordinary properties. The deal - called Peverel Properties - was arranged by Merrill Lynch and is believed to be the first ground rent deal issued from the U.K.
United Kingdom - HSBC last week launched an $850 million CLO securitization, featuring both dollar and sterling floating rate notes. A portfolio of corporate loans originated by HSBC will back the deal, called Clover Funding No. 1. The bank will act as lead manager on the transaction.
Dominican Republic - Less than a year after the announcement of its political risk insurance product for the capital markets, the Overseas Private Investment Corp. (OPIC) is looking to enter the MBS arena. The U.S. federal agency created to support U.S. business interests abroad said last week that it would develop "bold and innovative" ways to apply its financing and insurance products to housing markets in developing countries.
Mexico - Mexican low-income home-builder Consorcio Hogar S.A. is getting ready to launch its first ABS deal. The company expects to hit the market with approximately P200 million ($21.7 million) in bonds by May and Casa de Bolsa Ixe S.A. will be the arranger. "If this first deal is successful it will be just the beginning for us," explained Alberto Baz, Hogar's chief financial officer. "Eventually, we hope to raise P450 million in financing."
Argentina - Aguas Argentinas S.A., the company that operates the water and sewage systems of the city of Buenos Aires and its 17 surrounding districts, is coming to market with a $100 million securitization. Morgan Stanley Dean Witter will be the arranger for the transaction, which received a BBB-minus foreign currency rating and a AA local currency rating from Standard & Poor's.