Mitsui Fudosan Co., Japan's largest real estate developer, is arranging on its own behalf a deal backed by the future receivables from the sale of as yet-unfinished condominiums.
The 10 billion ($91 million) transaction will be backed by the eventual sale of 480 units in eight buildings located in Tokyo, which Mitsui expects to build over the next two years, according to Japanese media citing company officials. The transaction has been guaranteed by Tokio Marine & Fire Insurance Co.
The issue will be rated Aaa by Moody's Investors Service and privately placed in the domestic market. Launch date is expected to occur in March, said officials at Tokio Marine & Fire, who declined to give more details about the deal.
The transaction is unusual since it is backed by future receivables, which are relatively new in Japan. Until now, most Japanese securitizations have been backed by existing assets such as leases, consumer and auto loans.
It is also rare for a real estate developer in Japan to arrange its own securitization instead of hiring a securities firm, though Mitsui is expected to hire one closer to launch to help it with distribution. But as one of Japan's most diversified developers, it has the expertise to do the project on its own, said one ABS banker in Tokyo.