If you doubted the market source who recently said the South African structured finance arena is "exploding" (see ASR 5/20/02 p.1), maybe this will change your mind - FirstRand Bank Limited's (FRB) subsidiary WesBank, is gearing up to launch Procul Ltd., the first-ever synthetic securitization of retail auto loans in South Africa, a deal that comes on the heels of the country's first synthetic CDO, Fresco 1, originated by FRB.

Procul is a synthetic securitization of auto loans originated and managed in South Africa by WesBank. Using a credit default swap, the bank will take on the economic risk of the reference portfolio amounting to Rand 2 billion (U.S. $206.8 million) and will issue eight tranches of funded notes totaling the portfolio amount for classes A through G. Procul is a bankruptcy remote, special purpose institution (similar to the special purpose entity in the U.S.) incorporated under the laws of South Africa with limited liability.

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