ENBD auto loans securitisation float | US$229m | ||
Synopsis:CC and A&O acted as counsels to the first-ever securitisation of auto loan receivables in the Middle East | |||
Firm | Client | Role | |
Clifford Chance [Lead partner: Christopher Walsh] | ENBD | International counsel | |
Allen & Overy [Lead partner: Tim Conduit] | Citi | International counsel | |
Allen & Overy Tokyo [Partner: Jason Humphreys] | JBIC | Japanese counsel | |
Allen & Overy [Partner: Morgan Krone] | Citicorp Trustee Company | International counsel | |
Allen & Overy [Partner Anzal Mohammed] | Citi, JBIC, Citicorp Trustee Company | Dubai counsel | |
Magic Circle duo Clifford Chance and Allen & Overy have advised the United Arab of Emirates's largest bank by asset – Emirates NBD (ENBD) – on the first every securitisation of auto loan receivables in the Middle East, the first securitisation by ENBD, as well as the first public securitisation in the UAE in the last two years.
Clifford Chance acted as transaction counsel to ENBD on its deal, which was valued at US$221m. "We believe that this deal represents proof that main strem securitisations of loans and receivalbe portfolios of banks is possible within the UA, opening up the possibility for greater diversification of funding opportunities for banks, reduction of risk exposure on such portfolios and cheaper capital market debt financing," Clifford Chance lead partner Christopher Walsh told ALB.
Allen & Overy advised the sole bookrunner Citi, the guarantor, Japan Bank for International Co-operation (JBIC), and the trustee Citicorp Trustee Company. The transaction involved the sale of ENBD's auto loans to private and commercial clients in the UAE. The notes are denominated in Japanese yen and have the benefit of a principal payment guarantee from JBIC. "This transaction was a market first for many of the participants, including JBIC," A&O finance partner Tim Conduit said.
"It is very encouraging to see the return of public asset-backed issuance to the UAE. We are hopeful that other institutions will follow Emirates NBD's lead and that issuance will diversify into other asset classes," Conduit said.
The transaction was arranged by Citi.
"It is the first deal int he region to include a swap within it s rated structure. Finally, this was the first deal in the region to have the benefit of a guarantee from an independent third party," Walsh said.
Clifford Chance won the mandate with ENBD through a close and long standing relationship with the bank – having helped ENBD on a number of successful past issuance and having acted as their main counsel on capital market debt financing on a regular basis.
JBIC has also been a previous client of Allen & Overy. The most notable recent deal that A&O advised Citi on was a US$1bn covered bond issued by Kookmin Bank, the largest South Korean bank.ALB
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