Netherlands-based global vendor finance company, DLL, has closed an Asset Backed Securities securitization transaction in the United States for $443m (£364m).
The transaction is an inaugural securitization sponsored by Mahindra Finance USA, a joint venture between De Lage Landen Financial Services and Mahindra & Mahindra Financial Services. Mahindra Finance USA provides equipment finance solutions to facilitate the sale of Mahindra branded equipment primarily focused on agricultural equipment.
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This is the sixth ABS transaction (and fifth in United States) for DLL since November 2017 totaling over $3.7bn. This securitization is backed primarily by a portfolio of less than 100 horsepower tractors and related attachments in the United States. The transaction included only AAA notes rated A1+/P1 or AAA / Aaa by Standard & Poor’s and Moody’s, respectively.
Matthew Goldenberg, DLL’s vice president for capital markets, said: “This ABS transaction is the testament to investor’s trust and confidence in DLL’s ABS strategy and continued support of various DLL’s origination channels and diversified business platforms.”
Marc Dierckx, DLL chief financial officer and member of the executive board, said: “DLL is on target to expand our capital markets initiatives by further diversifying our funding sources pursuant to our strategic plan.”
In April this year, DLL has closed a securitisation transaction in the United States for $500m (€443m).
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By GlobalDataIn March DLL closed an equipment lease securitisation transaction in the United Kingdom for £306m, the first UK (ABS) transaction with equipment lease exposure in five years.
This is the first public ABS transaction issued by DLL in Europe. The transaction will be listed at the ISE (Irish Stock Exchange), and the notes are backed by a pool of UK equipment lease receivables originated by DLL’s UK branch, De Lage Landen Leasing.
This pool consists of hire purchase agreements, operational leases and financial leases, mainly in the agriculture and materials handling sectors. The final book finished at £750m, an oversubscription of 2.5 times.
