News on Securitization: Asia-Pacific securitisation reviving, as Singapore registers some securitisation deals

November 30, 2013

The market for asset-backed securities, which went into hibernation post the 2007-8 crisis, seems to be coming back to life. Hong Kong and Singapore and the two main centers of financial activity : most of investment banks in both the places had shut their stops and disbanded their investment banking teams post the sub-prime crisis. However, there are clear signs of activity resurfacing in both the places.

As regards Singapore – there have been 2 deals towards October-November.

One is a CMBS deal with pre-sales of properties under construction. This type of transaction has been done in Singapore long time back and was not seen over more than 6-7 years in the past. This deal, brought by T G Master, pertains to sale of spaces in Skies Miltonia, a property in Singapore. The progress payments on the property have been securitised, thus providing construction finance. This deal was structured and sold by DBS Singapore.

Another deal, brought by Courts Asia, uses two distinct SPVs – one in Malaysia and one in Singapore – to structure a multi-currency multi-jurisdiction transaction.

Hong Kong teams also seem busy structuring transactions for China.

Down South, Macquarie Leasing’s SMART template continues to have new issuances – this pertains to a portfolio of financial and operating leases.

In short, the Asian securitisation market has shown signs of clear revival in 2013, and 2014 may be holding the portents for a promising start.

Reported by: Vinod Kothari