Bansud considers CLO


Banco Bansud has joined the list of Argentine banks that plan to securitize their loans to the country's provinces in a collateralized loan obligation structure and could well be the first to hit the market with this new asset type.

The bank just filed a transaction with the CNV and is awaiting approval before issuing the deal in the local market, according to an official at the bank. Westdeutsche Landesbank and Banamex will be the lead managers, and ABN Amro will be the trustee, she said.

The securities will be placed first with the banks that have already made a bridge loan secured by the collateral to Bansud. And the remaining portion will be sold to institutional investors in Argentina, the official explained. The loan was finalized in March, she said.

The collateral, a pool of loans made to several provinces, is the latest asset type in the Argentine ABS market. Two other banks, Banco de Galicia y Buenos Aires and Banco Santander, are also working on transactions, according to local sources (ASRI, 5/31/99, p.1).

Securitization will allow the banks to move these loans to some of Argentina's weaker credits off balance sheet, while retaining some benefit from the high interest rates on the loans. - JB