Bangkok--25 Apr--Standard Chartered Bank
The Siam Industrial Credit Public Company Limited (“SICCO”), in cooperation with both joint lead arrangers - Standard Chartered Bank and Siam Commercial Bank Public Company Limited, has repeated its success in closing the third Asset Backed Securitisation (“ABS”) transaction in the Thai market. The offering of THB3,000 Million Debentures was issued through SICCO Special Purpose Vehicle 3 Company Limited to institutional investors.
Similar to its previous transactions, the Debentures will be backed by a pool of auto hire purchase receivables but this time with an expected average life of approximately 1.7 years. The transaction has received an issue rating of AAA(tha) from Fitch Ratings (Thailand) Limited based on the prudent credit structure with other available structural features such as Eligibility Criteria, Trigger Events, Back-up servicing arrangement.
After bookbuilding, overwhelmed demand from investors resulted in a 2.3x oversubscription of the debentures with the final coupon rate of 4.24% or equivalent to 63bps spread over the government benchmark. Participations were from almost all sectors of institutional investors including mutual funds, provident/pension funds and financial institutions.
Khun Chanin Roonsamrarn, President and CEO, The Siam Industrial Credit Public Company Limited, stated that
“SICCO is very proud to have achieved another milestone, via the launch of another very successful ABS transaction to the Thai market. This transaction has subsequently allowed SICCO to meet our financing objectives in diversifying our source of funding, achieving efficient funding source and expanding our business dynamically while maintaining our strong financial status. Moreover, this third ABS transaction has demonstrated that SICCO can continue to generate high quality of assets to serve all the requirements of this highly rated transaction. We appreciate Standard Chartered’s and Siam Commercial Bank’s efforts in delivering us another successful transaction.”
Khun Arthid Nanthawithaya, Regional Head, Capital Markets, South East Asia, Standard Chartered Bank commented that
“We are very pleased to see a positive and substantial development of the Securitization product in the Thai market. With overwhelming demand and high number of investors participated in the transaction, it has demonstrated that most investors now have full understanding of the product. Moreover, with the suitable structure of the debentures, perfect market timing and strong support from institutional investors, the transaction was closed at the tight end of the initial price guidance.
This has helped SICCO to achieve its financing objective at a very competitive level.”
Khun Somchai Sanyalaksiri, Executive Vice President, Siam Commercial Bank Pcl. added that
“We’ve created a win-win structure for both the originator and investors. This is the first time for SICCO to engage in non-revolving structure, which the underlying hire-purchase receivables have been fixed and the debentures will be amortising right from the beginning. SICCO can perfectly match the securitised assets with the debentures at the most competitive price.
The investors are offered the debentures which fit their investment profile and are backed by definitive pools of underlying receivables. As a result, the structure has significantly enlarged investor base for SICCO, achieving the lowest spread for auto loan securitisation in Thailand.”
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