Morgan Stanley Dean Witter's second securitization of Japanese property-backed non-performing loans - a transaction called International Credit Recovery Japan-Two - is targeting a launch date of late July. The portfolio has been finalized and execution is well advanced, a source close to the deal said.
Informed sources suggested that the Euro/144A deal's structure will resemble that of ICRJ-1, the first deal in Morgan Stanley's series of NPL deals which closed in December 1999 (ASRI 12/13/1999 p.1), though it will be significantly larger at around 30 billion to 35 billion ($280 million to $327 million). It is expected to be split into several tranches, with the majority of the deal rated triple-A.
The Japanese Ministry of Finance has is making progress in its plans to securitize some of its own property holdings. The Ministry hired experts to evaluate the state of its portfolio and will soon invite bids from banks interested in arranging the deal, said bankers in Tokyo.
A decision on who will be hired is expected in September and the deal is expected to worth around 10 billion. It will be the first time in that state-owned land has been securitized in Japan.
Antonio Villa recently left J.P Morgan where he was a vice president and country manager for Mexico and Peru in the Latin America structured finance department. Villa will now be director of Latin America industrials/oil and gas group at Deutsche Bank Alex. Brown.
Villa will be based in New York and report to managing director Robert Gray, head of the Latin America industrials and responsible for the Bank's Colombian investment banking activities.
Christopher Donnelly rejoined Moody's Investors Service in New York as senior vice president in the asset-backed group. Donnelly was a senior analyst in the structured finance group at Moody's from 1990 to 1995. After that he joined Duff & Phelp's Credit Rating Co., which was recently acquired by Fitch.
"It's great to be back working with old friends," he said.
Securitization is being considered as one way to raise finance for Britain's creaky railway system. The government is about to unveil a 10-year transport plan, which is expected to lay out how the railways will be financed.
One of the options being considered is the securitization of the access charges that Railtrack levies on railway operators for the use of its track and signaling, Railtrack chief executive Gerald Corbett told a parliamentary committee.
Following its debut in March with the GBP335 million Highbury Finance deal (ASRI 3/13/2000 p.1), U.K. supermarket giant J. Sainsbury is set to return with its second sale and leaseback securitization. Called Dragon Finance, the GBP230 million deal parcels the company's stores. The transaction is split into four tranches. Morgan Stanley Dean Witter is arranger following its involvement in the first transaction.