BSEC issues first securitization fund in lira

Bemo Securitisation (BSEC) has closed a securitization fund, valued at 16 billion Lebanese liras ($10.6 million), which was issued for Rasamny Younis Motor Co. (RYMCO). The fund, called RYMCO Drive IV SIF, is the first lira-denominated securitization fund launched on the local market.

BSEC said in a statement. “The decision to have the issuance denominated in liras is a response to the excess LL liquidity we recently noticed on the market."

“The issuance has been well perceived by the banks and was a perfect opportunity for them, as confirmed by the oversubscriptions we received” said Bassam Frem, BSEC’s Vice President.

The transaction consists of the securitization of auto loans extended by RYMCO to its clients.

“On closing date, the portfolio consisted of 859 loans, extended to 465 clients varying between car rental companies, individuals and corporate clients,” BSEC said.

“The structure provides for a three-year revolving period where the fund applies the cash collections it receives under the securitized portfolio to purchase new loans from RYMCO,” the company said.

BSEC said that it has structured, arranged, and lead managed the fund which was subscribed by Al Mawarid Bank, BBAC, FFA Private Bank, Lebanese Swiss Bank, and BLC Bank.

RYMCO Drive IV SIF follows three funds previously issued by BSEC for RYMCO, with an aggregate size of $34.7 million launched since 2009.