Siam Panich Leasing (SPL), the Thai consumer finance company, last week completed its debut THB5 billion ($128.7 million) auto loans ABS. Standard Chartered and Siam Commercial Bank were joint arrangers on the offering, which was backed by a THB6.6 billion pool of hire purchase agreements, equivalent to 24.4% overcollateralization for the rated notes.
The deal, issued out of the Siam Panich SPV, comprised two fixed-rate tranches assigned national scale ratings of triple-A by Fitch Ratings and equally sized at THB2.5 billion. The 2.5-year piece, featuring a revolving period for the first year followed by controlled amortization until maturity, priced at 5.73%. As of press time, that represents a 65 basis point pickup over government paper with the same tenor.
In addition, the 4.5-year tranche, featuring a three-year revolving period followed by 1.5-year controlled amortization, closed at 6.05%, around 81 basis points over government bonds.
Exact distribution details were not disclosed, although it is believed the deal was 1.5 times oversubscribed.
SPL will use proceeds to lower its short-term debt and boost loan origination. The company plans to issue a follow-up deal of between THB2 billion and THB3 billion in the third quarter.
Also in Thailand, the state-controlled Dhanarak Asset Development Co. said last week that it will issue the second deal from its THB24 billion securitization program in the fourth quarter of 2006.
The facility, backed by 30-year lease and fee payments received by Dhanarak from the Thai Treasury, was established last year to finance construction of a huge government office complex located on the outskirts of Bangkok.
Dhanarak issued a THB10.3 billion deal from the DAD SPV in November 2005 (ASR, 12/05/06). Bangkok Bank, Government Savings Bank, HSBC and Thai Military Bank acted as joint leads on the triple-A rated four tranche offering, with maturities stretching from seven years to 20 years. Coupons ranged from 6.7% to 7.99%.
The agency says the next deal will feature THB8.2 billion of bonds with maturities of 14 years and 19 years. As with the first offering, Dhanarak will target both retail and institutional investors. Officials declined to comment on whether the underwriting team will remain the same.
A third and final TBH5.5 billion transaction is due in 2007.
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