Taiwan's Shin Kong Life Insurance is set to launch a NT$1.65 billion ($52.6 million) real estate asset trust securitization, Shin Kong Life's second such offering, following a NT$1.22 billion issue last November. Industrial Bank of Taiwan will act as arranger, as it did with the earlier deal.
On the latest issue, Shin Kong Life will transfer ownership rights to part of the Dun Nan Building and 136 car parks located in Taipei to a newly established trust. The trust will then sell three classes of notes to investors, collateralized by rental payments. Current tenants in the building include retail, banking, electronics and chemical firms.
Moody's Investor's Service has assigned national ratings of Aaa' to the NT$1.13 billion senior certificates, A2' to the NT$400 million junior notes and Baa2' to the NT$120 million subordinated piece. All tranches have eight-year legal maturities, with credit support coming primarily through subordination, a reserve fund and any excess spread.
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