Standard Chartered Bank (SCB) last week launched the third synthetic CLO from its Cayman Islands-registered Start SPV. SCB, listed in Hong Kong and London, is joint arranger on the $1.5 billion deal with Lehman Brothers. The two parties worked together on Start II, a $1.6 billion transaction completed in June.
The latest offering will see SCB sell the credit risk on a pool of 498 corporate loans extended to 359 credits. One noticeable feature of the deal is the higher concentration of Asian names than in SCB's two earlier efforts. Around 81% of the borrowers are from Asia, while 18.3% are from the Middle East. The three biggest industry concentrations are banking and finance, metals and mining and transportation.