Cosmos Bank Taiwan has mandated HypoVereinsBank (HVB) to do its first ever international securitization, according to Nick Hamilton, who runs HVB's securitization team in the region.
The deal will see Cosmos securitize some of its consumer finance receivables, although the exact size of the deal has yet to be established. "We are very excited to have won this mandate," said Hamilton.
The mandate comes just two months after the Taiwanese authorities passed a new securitization law. This law is intended to allow securitization for the resolution of the deteriorating NPL problem among Taiwan's banks. The Cosmos deal is not NPL backed, but is clearly taking advantage of the new legislation.
At the moment, HVB is reviewing the collateral that will back Cosmos's deal and hopes to execute the transaction by the end of the year. Hamilton hopes that this will be the first of many such deals to come out of the country in coming months. "Taiwan is a very interesting place to be right now," he says, referring to the amount of investment banking work that is becoming available.
