Dresdner Bank is planning to launch a securitization of E3 billion ($3.6 billion) of corporate loans made to small to medium-sized clients in the first True Sale International deal done from a local special purpose vehicle. Previously, TSI SPVs were outside of Germany, in places such as the Grand Cayman Islands and Channel Islands.
Germany’s True Sale International venture was created in 2004 by 12 lenders, including Dresdner, to improve the legal framework and infrastructure for true sale securitizations and set minimum standards for loans included in true sale deals. It has handled two sales of asset-backed debt to date by Volkswagen. The Dresdner deal is the first to be done by a founder-member.
Karl-Friedrich Brenner, a Dresdner spokesman, said, “It makes sense to bring money into a German-based platform. It’s easier, and you are saving money. In a foreign country, you have to bring in lawyers, and spend money on manpower.” He added that the legal framework governing SPVs in Germany was changed in 2005, making it much more efficient to structure transactions there. “The sign is that mid-cap [borrowers] realize Dresdner is willing to do more business going forward,” added Sandra Gartner, a member of the structure team at Dresdner.
RCL Securitisation GmbH is comprised of two parts--a E1 billion senior component that will be marketed in February and a junior part that will be funded via the issuance of commercial paper from Dresdner’s own conduit.