Copying and distributing are prohibited without permission of the publisher
ABN vehicle targets export credit
01 November 2005
ABN Amro has created a new way of funding export credit. Neil Unmack examines the structure.
Read more:
Export credit
securitization
structured finance
ABN Amro;
ABN Amro has launched a securitization vehicle to finance export credit loans, allowing it to compete for more aircraft deals.
The Dutch bank launched the programme with a successful $1billion note issue, the first in its $25 billion SovRisc programme.
By relying on export credit agencies' triple-A credit quality, the deal is designed to allow ABN to fund its export finance loans competitively off balance sheet, even at levels inside its unsecured cost of funds. This will allow ABN to price its loans more aggressively and compete with banks that have existing conduits.
SovRisc will be used to finance a range of assets backed by export credit loans, including aircraft, guaranteed by the Export-Import Bank of the United States, France's Coface, Germany's Hermes and the UK Export Credits Guarantee Department.
ABN as bookrunner priced the inaugural three-year bond at 99.723 with a coupon of 4.625%, to give a spread at...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
