Investec Asset Finance has successfully sold securities worth £246m (292m) backed by equipment leases to SMEs in a deal aimed at extending its lending facilities.
The securitised bonds were backed by almost 36,000 leases and hire purchase contracts.
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The deal was arranged by Investec Asset Finance’s parent bank and Lloyds Bank and came in four tranches.
£227.7m of the deal was AAA rated and priced at 90bps over Libor (0.47%)
Another £15.8m was rated AA and £11.2m rated single A.
The BBB rated element of the deal was £9.24m of the overall issue with no high-yield element.
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By GlobalDataThe deal was approximately two times oversubscribed with 82% of the bonds going to asset managers, 17% to banks and 1% to insurance companies. In all there were about 15 participants in the deal two thirds of which were UK investors.
The securitisation deal will enhance IAF’s balance sheet and help them to reach their target of a loan book of £1bn in the next two years.
