Clare Special Purpose Vehicle has launched a consumer-finance securitization worth the equivalent of 60 billion (U.S.$446 billion), via lead manager Mizuho Securities. Orient Corp (Orico) originated the deal, the first international securitization of card loans by a non-bank institution. Orico has also originated eight Japanese auto-loan securitizations.

The deal featured a Euro tranche, a U.S.-dollar tranche and a yen tranche. "Orico did the deal in different currency tranches to maximize its investor base," said Richard Tarn at Mizuho in London. "As these deals are not going to come as prolifically as Orico's auto deals, it was better to do all three together. Orico will do more of these deals, which will be regular but not frequent." Investors included banks, insurance companies, corporates and conduits. The deal was sold in Europe, including a large portion in the United Kingdom. A significant portion was placed in Japan, where most of the yen tranche was sold.

Moody's Investors Service and Standard & Poor's rated the deal as follows: 16.7 billion (U.S. $124.2 million), priced at par, coupon Libor +97 basis points, average life 1.75 years, rated Aa2/AA; EURO85 million (U.S. $73 million), priced at par, coupon Libor +97 basis points, average life 1.75 years, rated Aa2/AA; and $274 million, priced at par, coupon Libor +97 basis points, average life 1.75 years, rated Aa2/AA.

Tarn said: "The deal sold to a wide range of investors. Buyers included a number of past buyers of Orient Corporation's Oscar auto-loan deals, but this transaction also appealed to a number of new investors, because it was: a new asset class; had a revolving structure with controlled amortisation to follow; and was rated double-A rather than triple-A.

"A revolving structure was most suitable for this deal because the assets are short term and revolving." Orient's Oscar auto-loan securitizations have all used a pass-through amortization structure.

The collateral pool comprises 259,730 cashing card loans worth 90 billion (U.S. $669.4 million) About 98.6% of the pool consist of loans with revolving payments, and 4% are single lump sum payments. The underlying loan receivables are generated with Amenity Cards; one of Orico's credit cards that are only used for cash advance purposes.

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