Standard Chartered Bank has completed its sixth CLO under its START CLO program called START VI CLO, according to a release from the firm.
With this latest $1.25 billion synthetic CLO, the bank has sold the credit risk of a diversified pool of loans extended to over 400 borrowers with around 90% of the borrowers from Asia and the Middle East. The initial pool's average credit quality is 'BB' equivalent, the release said.
The deal was solely arranged and distributed by Standard Chartered. Additionally, a single unrated equity tranche worth $87.5 million was also distributed to leveraged accounts based mainly in the U.S., Europe and Asia.
Standard Chartered's prior issuance off the START program was the $1.0 billion START V CLO back in July 2008, the release said.
“This is the first issuance off our START securitization program since the deepening of the financial crisis in 2008, so it is particularly pleasing to see such a strong market reception," said Sean Wallace, group head of origination and client coverage in wholesale banking. "This is testament to the confidence investors have in our deep client relationships and expertise across our core footprint of Asia, Africa and the Middle East.”