Siam Industrial Credit Public Company Ltd. (SICCO) has launched Thailand's first ever auto loan asset-backed securitization with a Bt4 billion ($163 million) 4.5-year offering via joint leads Standard Chartered and Siam Commercial Bank.
The deal was priced at par with a coupon of 4.21% to yield at 85bp over three-year Thai Treasuries. Following a marketed range of 70bp-90bp over Treasuries, the joint lead managers were able to settle comfortably at the 85bp level having built an order book that was 1.35 times oversubscribed.
The notes, backed by Bt4.94 billion worth of auto loan purchase receivables originated by SICCO, feature an 18-month revolving period followed by a controlled amortization period - a first for Thai Securitization. The floating rate notes have a legal final maturity of 6.5 years and an average life of three years. The bonds have an expected maturity of 4.5 years, with a soft bullet and a step up coupon if not repaid.
Issuance of the notes will fund 81% of the purchase of the receivables, while the remaining 19% will be deferred for credit enhancement, with a total over-collateralization of 23.5%.
The issue was sold to institutional investors, primarily domestic fund managers, insurance companies and pension funds.
The deal was launched through SICCO SPV 1, a special purpose vehicle established under Thailand's Securitisation law.
This is the largest ABS deal to ever come out of Thailand - the previous record holder was a dual tranche Bt2 billion ABS backed by credit card receivables from Aeon Thanasinsap completed in February - and is a good indicator for Thailand's domestic capital markets, which have never quite returned to the levels of depth and liquidity that they enjoyed before the crisis.
SICCO is a Thai finance company 39% owned by Siam Commercial Bank.
The notes carry a AAA(tha) rating from Fitch.
