ICICI Bank carries out largest securitisation deal

MUMBAI: Leading private sector lender ICICI Bank has carried out the largest rated securitisation transaction for an amount of Rs 1,929.9 crore -- a process that involves converting the bank's car loans into tradable securities.

The securities, called Pass Through Certificates (PTC), are backed by the ICICI Bank's new and used car loan receivables and have been issued by Indian Retail ABS Trust under the bank's securitisation programme.

Credit rating agency CRISIL has assigned a high investment grade rating (AAA) to these securities.

The bank would assign the loan pool to the trust and will receive a purchase consideration equal to the pool's principal outstanding.

"Including the credit opinions assigned to the liquidity and second loss facilities, the rated amount of Rs 1,992.99 crore is the largest in any securitisation transaction in India," a CRISIL statement said.

The total rated amount consists of a liquidity facility of Rs 76.65 crore and a credit enhancement of Rs 77.75 crore. The balance amount of Rs 1,837.6 crore is the loan amount, of which new car loan receivables comprise 81.6 per cent and used car loan receivables account for 18.4 per cent.

Source: timesofindia.indiatimes.com