Asahi Bank lines up debut securitization

Asahi Bank of Tokyo, one of JapanÆs biggest city banks, is lining up its first foray into the world of securitization.
The Ñ29.4 billion ($250 million) transaction, issued through Special Purpose Vehicle (SPV) Abode, will be backed by a pool of residential mortgages originated by the bank. Deutsche Bank has been mandated to lead manage the deal.

The underlying pool - worth Ñ29.8 billion - is made up of 4,680 loans, 70% of which were originated to refinance the obligor’s existing mortgage loan. The average loan-to-value of the loans is 45.79% and the pool has an average seasoning of 43.77 months.

The transaction has been split into five floating rate tranches that will pay a coupon over one month Japanese Libor. Moody’s Investors has given triple-A ratings to the three senior note classes - worth Ñ28.1 billion - an A2 rating to the Ñ700 million B tranche, and Baa2 to the Ñ600 million subordinated C piece.

Credit enhancement for the senior notes will come from 5.6% overcollateralization, any excess spread accrued on the notes and a Ñ58 million cash reserve.

Meanwhile, consumer credit company Quoq, a regular securitizer of assets including consumer loans and auto loans, is set to return to the market in the near future. The firm’s latest issue - again being backed by consumer loans - will raise Ñ25.9 billion and will be split into two tranches: one Ñ23.1 million tranche of triple-A rated paper and a Ñ2.8 billion subordinated piece.


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