BankMed manages securitization deal for RYMCO
First inventory-backed transaction in the country
MedInvestment Bank and Rasamny Younis Motor Company (RYMCO), the exclusive dealer of Nissan, Infiniti, and GMC, announced the successful closing of RYMCO SEC I MSF, a vehicle inventory securitization deal.
The transaction concerns the securitization of a portion of RYMCO’s new vehicle inventory, according to Samer Salam, Chief Executive Officer of SaudiMed Investment Company which acted as a technical advisor to MedInvestment Bank. “The deal provides a four-year replenishing period during which additional eligible assets could be financed through the structure, bringing the total expected financing provided to RYMCO over the life of the transaction to almost $250 million,” he said.
Abdallah Nassif, Head of Structured Finance at SaudiMed Investment Company said: “The aggregate transaction size is close to $15 million with two tranches of notes placed with 35 investors”.
MedInvestment Bank and SaudiMed Investment Company are wholly owned subsidiaries of BankMed.
Mohammad Ali Beyhum, General Manager of BankMed and MedInvestment Bank which led the deal said: “It is an important milestone for our banking group as well as the local and regional securitization industry, since it is the largest non-mortgage Asset Backed Securitization (ABS) executed out of the country to-date, the first Inventory Securitization in the MENA region, and the first securitization of non-financial assets out of Lebanon." RYMCO has contracted in the past securitization deals backed by receivables coming from sold cars. They were undertaken by BemoSec.
Fayez Rasamny, Chairman of RYMCO, brands said: “This transaction gave RYMCO access to off-balance sheet funding and allowed it to diversify its funding sources by tapping a new investor base,” he said.
Soumrani Lawyers and Legal Counsels and Rasamny & Saadi Law Firm acted as legal advisors to MedInvestment Bank and RYMCO for this transaction respectively.
Reported by Leila Rahbani
Date Posted: Mar 06, 2014