Standard Chartered Issues Sealane II Trade Finance Securitisation
Standard Chartered Bank has completed its second public trade finance securitisation, Sealane II, under the bank’s securitisation programme. The first Sealane trade finance deal was closed in November 2007 and was the first of its kind for the trade finance market. The latest transaction under the bank’s securitisation programme was Start VI in December 2010.
Sean Wallace, group head of origination and client coverage, wholesale banking, Standard Chartered said: “This transaction not only demonstrates our unique strength at the heart of the growing trade and investment flows in Asia, Africa and the Middle East but also further deepens our distribution channels. Similar to our first Sealane deal, this placement strongly exemplifies the bank’s leadership position in driving innovative financing in the trade sector. Our bank has a long history of success built on our deep client relationships and in these turbulent markets it is exciting to see investors continue to support our client strategy and strong risk capabilities.”
The trade was upsized from US$2.5bn to US$3bn due to strong investor interest. With this latest US$3bn securitisation, Standard Chartered has sold the credit risk of a diversified pool of trade finance assets referenced to more than 1,600 clients with about 88% of the borrowers domiciled in the bank’s key markets in Asia and Middle East. The average credit quality of the initial pool is BB equivalent.