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Perspective
11 December 2013

Expected pricing for Trade MAPS 1

Joint Citi / Santander $1 billion trade securitisation is expected to price at one month Libor plus H60's bp

Pricing of one month Libor +H60’s bp is expected for the AAA-rated (Fitch Ratings) top tranche of Trade MAPS 1, the asset-backed securitisation (ABS) recently issued by Citi and Santander. This is according to initial pricing thoughts (IPT) documentation seen by TXF.

The total ABS is $1 billion, and the top tranche represents approximately $874.44.

The $77.61 million single-A rated B tranche is set at one month Libor (1mL) plus M100’s bp. The $31.34 million C tranche (BBB rated) is at 1mL plus M200’s bp, and the BB/B rated D tranche ($16.61 million) at 1mL +600A bp.

The maturity is three years.

More detail on the final pricing is expected this week. It has been widely reported that across the board, new issuances have found it challenging to obtain a lower level of pricing as investors look for yield at the end of the year. As such, TXF understands the high yield B-D tranches are proving popular amongst investors. 

The Trade MAPS initiative has taken two years to come from initial discussions through to issue. The securitisation is seen as something of an industry benchmark, with similar offerings expected to follow.  

An extensive roadshow was conducted for Trade MAPS 1, reaching out to over 70 potential investors.  It is hoped that the structure will be a template not just for ~Citi^ and ~Santander^, but for other international trade banks keen to remove pressure on balance sheets brought about by increased regulation. ~ING^ were initially expected to join, but instead will take part in a second offering in the new year, along with Citi, Santander, and a currently undisclosed fourth bank.

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