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SCB securities auto receivables aggregating Rs 105.72 crore
Mumbai, June 30: In its first asset-backed issuance in Indian market, Standard Chartered Bank (SCB) has securitised a portion of its car loans portfolio via an issue of senior pass through certificates (PTCs) aggregating Rs 105.72 crore.
Mumbai, June 30: In its first asset-backed issuance in Indian market, Standard Chartered Bank (SCB) has securitised a portion of its car loans portfolio via an issue of senior pass through certificates (PTCs) aggregating Rs 105.72 crore.
The PTCs have been issued by Mumbai auto receivables trust 2003-Series I, a special purpose vehicle settled by UTI Bank Ltd, SCB said in a release here today.
The auto loan receivables were all originated by Standard Chartered Bank and it would continue to act as a servicer for these loans, it added. This issue is intended to be the first in a programme of such transactions by the bank, it said.
SCB said the trust raised by funds through issuance of class A1 PTCs for Rs 42.4 crore and class a2 PTCs of Rs 63.3 crore rated "p1+(so)" and "AAA(so)" by Crisil respectively.
The ratings are based on the strength of cash flows from the selected pool of car loan contracts, strength of standard chartered as the originator and servicing agent, credit enhancement in the form of cash collateral and payment mechanism, which has been designed to ensure full and timely payment, it said. The credit enhancement required for this transaction was in the form of cash collateral of Rs 8.43 crore, it said adding, UTI Bank would function as an independent trustee.
SCB has an auto loan portfolio of Rs 1,600 crore (book value) distributed across 34 cities, with a large portion concentrated in major metros.
Bureau Report
The auto loan receivables were all originated by Standard Chartered Bank and it would continue to act as a servicer for these loans, it added. This issue is intended to be the first in a programme of such transactions by the bank, it said.
SCB said the trust raised by funds through issuance of class A1 PTCs for Rs 42.4 crore and class a2 PTCs of Rs 63.3 crore rated "p1+(so)" and "AAA(so)" by Crisil respectively.
The ratings are based on the strength of cash flows from the selected pool of car loan contracts, strength of standard chartered as the originator and servicing agent, credit enhancement in the form of cash collateral and payment mechanism, which has been designed to ensure full and timely payment, it said. The credit enhancement required for this transaction was in the form of cash collateral of Rs 8.43 crore, it said adding, UTI Bank would function as an independent trustee.
SCB has an auto loan portfolio of Rs 1,600 crore (book value) distributed across 34 cities, with a large portion concentrated in major metros.
Bureau Report