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Successful Closing of Cylinder II transaction by Bemo Securitisation

$14,355,839 Revolving Auto Securitisation
Beirut, December 16, 2009: BSEC - Bemo Securitisation SAL is happy to announce the successful closing of Cylinder II, the largest local securitisation issuance and the second auto securitization for Bassoul & Heneiné SAL. Bemo Securitisation SAL successfully closed the second revolving auto securitization for Bassoul & Heneiné SAL, the exclusive distributor in Lebanon of BMW, Renault, Mini Cooper, Alfa Romeo, and Dacia brands.

The deal is a $14,356Million securitization of the company's portfolio of auto loans and constitutes the largest asset backed issuance in the local market and the second issuance for the company. "This transaction comes as the second success for Bassoul & Heneiné , the first one being launched in 2005 and having very well performed even during the tough times the country went through.

This confirms BSEC structuring capabilities and validates the trust of both the clients and the investors", explained Mr. Riad Obegi, Chairman of BSEC . "We are very proud to be up to their expectations and will always strive to offer them innovative financial solutions", he adds.

Cylinder II is a structured investment fund, established under the Lebanese Securitisation Law 705 pursuant to Banque du Liban approval. On closing date, the fund has issued two classes of notes, Class A and Class B, which are backed by a diversified portfolio of auto loans purchased by the fund from Bassoul & Heneiné . Class A notes have an expected weighted average life of 3.9 years and a yearly fixed coupon of 7.25%, and Class B which is subordinated to Class A is retained by Bassoul & Heneiné .
 
The structure provides for a revolving period during which additional loans may be sold to the fund by Bassoul & Heneiné and which can step up its financing up to $44 Million. Different types of credit enhancements are embedded in the structure to ensure the maximum protection to noteholders; these being a first loss protection, (ii) a cash reserve fully funded on closing, and (iii) an excess spread trapping mechanism. These credit enhancements come in addition to other structural enhancements such as portfolio eligibility criteria and conditions precedent to purchase, amortization and accelerated amortization triggers. "This deal constitutes another success for our company thanks to our cooperation with BSEC .

We had launched in 2005 Cylinder I which was the first revolving auto securitisation in the market and now we are brining the largest securitization to the same market. BSEC solid structures combined with our quality as servicer have incited investors in the first transaction to renew their confidence and subscribe to the second issuance, as well as to other categories of investors to join the underwriting club. The Cylinder series of deals are strategic to our company, as they provide it with an alternative source of financing, and allow it to grow while enhancing its financial ratios" adds Mr. Pierre Heneiné, General Manager for financial affaires of Bassoul & Heneiné SAL. The deal is structured, arranged and lead managed by BSEC , a financial institution specialized in structured finance. The issuance was underwritten by Banque BEMO, BEMO Europe Banque Privée, Medgulf, Fransa Invest Bank and Federal Bank of Lebanon. The legal counsel of BSEC on the deal is Dr. Nasri Antoine Diab.

-Ends-

About BSEC
BSEC is a financial institution specialized in structured finance, which has brought to market pioneering transactions. BSEC was rewarded by international industry (ISR, Euromoney, etc.) for its innovative structures in both the conventional and Islamic finance areas. BSEC is licensed as a financial institution under Lebanese law and is a wholly owned subsidiary of Banque BEMO SAL. BSEC is regulated by the Central Bank of Lebanon and is a member of the Association of Financial Institutions in Lebanon.

For more information, please contact
Tel: +961 1 997998
Fax: +961 1 994801
3rd Floor, Two Park Avenue Building Park Avenue
Beirut Central District, Minet El Hosn, Beirut-Lebanon
Email: contact@bsec-sa.com  
Website:  www.bsec-sa.com  

© Press Release 2009