First Middle East auto-loan securitisation explained

Author: | Published: 12 Aug 2010

The first auto-loan securitisation in the Middle East has closed thanks to an innovative dual-SPV structure. The deal is based on a pool of auto-loans put together by Emirates NBD and guaranteed by the Japan Bank for International Cooperation (JBIC), encouraging Asian investors to embrace the first-time issuer.

To achieve this support, a structure was developed that allowed the Japanese development bank to act as both guarantor and investor, while also incorporating a true-sale model that gave comfort to rating agencies and investors.

“This should provide a roadmap for loan securitisations in the Middle East,” said Christopher Walsh, a partner at Clifford Chance in Dubai who advised Emirates NBD. “We tried to give investors a structure as close...