Following two previous conduit deals, MBNA Canada Bank recently launched its third credit card securitization, a C$250 million offering with a C$37.5 million subordinate piece sold privately into the Canadian term market.

Such a move could pave the way for an inaugural MBNA Canada public deal, said a source familiar with the transaction.

As of November 1999, the Canadian asset-backed market showed nearly $63 billion in issuance year-to-date; however, $50 billion of that total represents commercial paper sold into multiseller conduits.

"They really just started to do true public deals in Canada last year," the source said.

Vernon Wright, vice chairman of MBNA American Bank declined to comment on the company's plans - though he did say, "As you know, MBNA has been consistent in each of the markets it's been in, in both the UK and the US, in terms of issuing public transactions."

MBNA's recent deal was issued out of the Gloucester Credit Card Trust. The C$37 million term notes, rated BBB by Standard and Poor's, were titled Series 1999-2 Collateral Notes. Canadian bank Toronto Dominion Securities acted as underwriter.

"The deal was very well received," said Brad McConnell, vice president and director at TD. "It was fully sold in fairly short order."

In 2000, MBNA expects to at least match the C$500 million it issued in 1999, and while Wright was unable to put a number on origination, he described the portfolio as showing "significant, strong growth."

"We're very pleased with the growth of the portfolio in Canada," he added.

MBNA Canada did not start originating loans until early 1998. To date, the company has securitized C$750 million in asset-backed notes, nearly $700 million of that total was sold into conduits.

MBNA Canada is a fully licensed bank in Canada, and originates its cards in the Canadian market.

"This is pure Canadian collateral on the transaction," Wright said.

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