HDFC completes Asset Backed Securitisation
By Our Banking Bureau | 09 Jun 2004
The PTCs have been issued by Retail 2004 Series II, a special purpose trust settled by IL&FS Trust Company Limited. The receivables are originated by HDFC Bank and the Bank will continue to act as servicer for these loans.
The Trust raised the funds through issuance of three series of Senior PTCs, Series A1, Series A2 and Series A3. Series A1 was rated A1+(so) and both Series A2 and A3 were rated MAAA(so) by ICRA. The ratings are based on the strength of cash flows from the selected pool of loan contracts, the credit enhancement and the integrity of the legal structure. The credit enhancement is available in the form of subordinate PTCs (6.7 per cent of Senior PTC cash flows), cash collateral (1.78 per cent of Senior PTC cash flows) and subordination of opening overdues.
The underlying assets are auto and commercial vehicle loan receivables from a pool of 26,359 loan contracts with weighted average seasoning of 9.4 months as of April 22, 2004. The concentration on individual exposures is small and majority of the pool is in the small and medium cars and HCV segments.
Standard Chartered Bank acted as the Book Runner and Lead Arranger for the issue.