Kettaneh AutoFund by BemoSec. Securitization becomes part of financial strategy - Lebanon

Kettaneh AutoFund by BemoSec
Securitization becomes part of financial strategy
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Bemo Securitization (BSEC) successfully closed the Kettaneh Auto-Fund SIF. It is the first securitization transaction for Ets. F.A. Kettaneh, the exclusive importer of Audi, Volkswagen, and Skoda vehicles.

The transaction consists of securitizing a portfolio of auto loans to Kettaneh’s clients, including car rental companies, corporate clients, the company’s employees, and their dependents.

“Securitization is now part of our financing strategy to develop our company’s capacity and support its sales activity,” said Nabil Kettaneh, Chairman.

The Kettaneh Auto-Fund was established as a securitization investment fund and has issued two classes of notes: senior Class A Notes with an expected weighted average life of 3.75 years, and a subordinated Class B Note.

The Class A Notes are subscribed by banks. Class B Notes are held by Kettaneh, which cover potential losses in the loan portfolios. This structure provides protection to Class A Note holders, under several credit enhancements.

Kettaneh Auto-Fund has been approved by the Capital Markets Authority (CMA). The transaction is structured, arranged and managed by BSEC. The issuance was subscribed by Banque Bemo, FFA Private Bank, BSL Bank, Medgulf, Crédit Libanais Investment Bank, and Bemo Europe-Banque Privée.

BSEC is a financial institution specialized in structured finance and a wholly-owned subsidiary of Banque Bemo.

Reported by Leila Rahbani
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Date Posted: Sep 10, 2014