Standard Chartered today announced the closing of a USD350 million securitisation for Finansbank A.?. The US$350 million issue by Bosphorous Financial Services Limited is the inaugural issue under Finansbank's new diversified payment rights (DPR) securitisation programme. The new DPR programme amends the Trade and Diversified Payment Rights securitisation programme established in March of 2000 and effectively refinances the USD150 million of Floating Rate Series 2003-A Notes issued last year.
Bosphorous Financial Services will issue two classes of notes -
US$225 million Floating Rate Series 2004-A, with a final maturity of 5 years and an average life of 3.6 years
US$125 million Fixed Rate Series 2004-B, with a final maturity of 5 years and an average life of 3.6 years
Both the 2004-A & B Series are rated Baa3 by Moody's.
New Issue Levels
This Issue, rated Baa3 by Moody's, represents the largest investment grade-rated Turkish securitisation transaction ever to come to the 144A/RegS market without any form of third party credit enhancement. Other similar deals have not exceeded the USD250 million level. The Issue achieved competitive pricing of Libor+235bps and 6.10%, respectively for the Series 2004-A and Series 2004-B Notes.
The Issue is notable for being a significant increase over the initial March 2000 issue of $125 million and has been revised to facilitate working with Monoline Insurers for future issues.
Investor Interest
The USD200 million issue was significantly over-subscribed and subsequently upsized to USD350 million. It has been distributed to a broad range of institutional investors located in the United States, Europe, the Gulf region and Asia.
Rahul Arora, Managing Director responsible for ABS Distribution in the Asset Securitisation Group at Standard Chartered in London, commented: "The distribution of this issue has been a great success for Finansbank and, importantly, has significantly widened the geographic spread of Finansbank's investor base from the issue in 2000. The issue was placed with 14 investors and, by USD volume, 54% was from the US, 36% from Europe and 10% was from the Gulf region and Asia.
Commenting on the significance of the transaction, Noel Edison, Managing Director in Asset Securitisation at Standard Chartered in London, said: "Through this issue, Finansbank has demonstrated the importance of a combined 144A/RegS issue in establishing a truly international investor base which is largely distinct from its more traditional commercial banking relationships. We are particularly pleased to see Finansbank take advantage of the over subscription above the $200 million initial offering size by agreeing to issue $350 million of notes. This issue is the largest investment grade Turkish securitisation issue to date that has not been credit enhanced by a Monoline Insurer."
Ozlem Cinemre, Executive Vice President of Finansbank, commented: "We are very pleased with our DPR programme as it will continue to provide Finansbank the opportunity to access term funding on a flexible basis and to take advantage of unique market opportunities as and when they arise. The DPR securitisation programme forms an important part of Finansbank's international funding efforts. Among Turkish banks, Finansbank is experienced as an originator and servicer of future flow securitisations having completed the first ever DPR issue in 2000 backed by a combination of trade and diversified payment rights. The success of this issue is a testimony to Finansbank's ability to access term funding in the international capital markets."
-Ends-
NOTES TO EDITORS:
Diversified Payment Rights are US Dollar, Euro and Sterling denominated payment orders created via SWIFT MT 103 or similar payment orders accepted by Finansbank. Diversified Payment Rights are derived primarily from Finansbank trade finance and other corporate businesses and are paid through foreign depositary banks.
About Finansbank
Established in 1987, Finansbank provides a wide variety of corporate, investment and consumer banking products and services, primarily to medium and large-sized Turkish corporations, foreign multinational corporations with operations in Turkey. Finansbank is currently the 5th largest private bank in Turkey with international banking activities representing 43% of Finansbank's consolidated assets for the year ended 31 December 2003.
About Standard Chartered's Asset Securitisation Group: The Asset Securitisation Group was established in 2002 to enhance the range of Capital Markets financing solutions offered to clients across the world. Based in London, Hong Kong and Mumbai, the team leverages the Bank's on-the-ground presence in Asia, the Middle East, South Asia and Africa, and its strong capital markets capabilities in these markets, to arrange and distribute asset-backed and future flow transactions for clients globally.
Standard Chartered Bank
Standard Chartered employs 30,000 people in over 500 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. It is one of the world's most international banks, with a management team comprising 70 nationalities.
Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation.
Standard Chartered serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, securities services, foreign exchange, debt capital markets and corporate finance.
This announcement appears as a matter of record only and is not, and should not be considered to be, a solicitation, offer or invitation in any jurisdiction to purchase or otherwise invest in any securities.
For further information, please contact:Noel Edison
Managing Director
Asset Securitisation Group
Global Markets UK/Europe
Standard Chartered Bank
Tel: +44 (0) 20 7280 7151
Email: Noel.Edison@uk.standardchartered.com
Wong Kwei Ming
Marketing Manager
Wholesale Banking Marketing
Standard Chartered Bank
Tel: +65-63312904
Email: Wong.Kwei-Ming@sg.standardchartered.com
© Press Release 2004
