completes Asset Backed Securitisation
9 June 2004
Bank has completed its largest Asset Backed Securitisation
(ABS) programme till date by way of issue of Senior
Pass Through Certificates (PTCs), backed by gross receivables
of Rs811.35 crore, demonstrating the bank's expanding
retail business in India and increased focus on securitisation.
The issue, which opened on June 4, 2004, received an
excellent response from mutual funds and banks and was
subscribed on the day of opening.
PTCs have been issued by Retail 2004 Series II, a special
purpose trust settled by IL&FS Trust Company Limited.
The receivables are originated by HDFC Bank and the
Bank will continue to act as servicer for these loans.
Trust raised the funds through issuance of three series
of Senior PTCs, Series A1, Series A2 and Series A3.
Series A1 was rated A1+(so) and both Series A2 and A3
were rated MAAA(so) by ICRA. The ratings are based on
the strength of cash flows from the selected pool of
loan contracts, the credit enhancement and the integrity
of the legal structure. The credit enhancement is available
in the form of subordinate PTCs (6.7 per cent of Senior
PTC cash flows), cash collateral (1.78 per cent of Senior
PTC cash flows) and subordination of opening overdues.
underlying assets are auto and commercial vehicle loan
receivables from a pool of 26,359 loan contracts with
weighted average seasoning of 9.4 months as of April
22, 2004. The concentration on individual exposures
is small and majority of the pool is in the small and
medium cars and HCV segments.
Chartered Bank acted as the Book Runner and Lead Arranger
for the issue.
of reports on HDFC Bank