SA Home Loans launches sale
2007-10-16 · Company News
SA Home Loans has successfully launched the sale of residential mortgage backed securities (RMBS) through The Thekwini Fund 7 (Pty) Ltd.
This is its seventh term securitisation deal over the last six years.
The transaction saw strong investor interest which allowed SA Home Loans to increase the size of the transaction from R1,5bn to R2,5bn. Demand at economic spreads was well in excess of R3bn.
The transaction attracted wide investor interest in South Africa with 14 institutions, pension funds and bank investors participating.
Despite the continued unease in the European financial markets, which has seen the market close for new RMBS paper, SA Home Loans successfully tapped the credit markets with its Thekwini Fund 7.
"We are delighted with the outcome of the Thekwini 7 securitisation," says Kevin Penwarden, CEO of SA Home Loans.
The transaction is backed by a very high quality portfolio of floating-rate and fixed-rate home loans with a weighted average seasoning of nine months and a weighted average loan-to-value ratio of 60,5%.
The capital structure offers five tranches rated by Moody's and Fitch: three AAA tranches, a Single A tranche and a BBB tranche.
The notes will be listed on the Bond Exchange of South Africa except for a small unlisted Class A2B note which was structured to meet the needs of a specific investor. – I-Net Bridge
This is its seventh term securitisation deal over the last six years.
The transaction saw strong investor interest which allowed SA Home Loans to increase the size of the transaction from R1,5bn to R2,5bn. Demand at economic spreads was well in excess of R3bn.
The transaction attracted wide investor interest in South Africa with 14 institutions, pension funds and bank investors participating.
Despite the continued unease in the European financial markets, which has seen the market close for new RMBS paper, SA Home Loans successfully tapped the credit markets with its Thekwini Fund 7.
"We are delighted with the outcome of the Thekwini 7 securitisation," says Kevin Penwarden, CEO of SA Home Loans.
The transaction is backed by a very high quality portfolio of floating-rate and fixed-rate home loans with a weighted average seasoning of nine months and a weighted average loan-to-value ratio of 60,5%.
The capital structure offers five tranches rated by Moody's and Fitch: three AAA tranches, a Single A tranche and a BBB tranche.
The notes will be listed on the Bond Exchange of South Africa except for a small unlisted Class A2B note which was structured to meet the needs of a specific investor. – I-Net Bridge
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