STRUCTURED FINANCE: GMAC-SAIC set to price Rmb3bn third ABS

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Asia

GMAC-SAIC Automotive Finance released indicative pricing for a Rmb3bn (US$492m) offering of auto loan-backed securities, marking its return to the related market.

The issuance, its third in history, comprises a Rmb2.64bn domestic Triple A rated senior tranche A, indicated at 150bp–250bp over the one-year deposit rate, and a Rmb211m domestic Single A rated tranche B, indicated at 250bp–350bp over. Both tranches will feature floating-rate coupons. Those indications are equivalent to 4.5%–5.5% and 5.5%–6.5% for the first interest-rate period.

There is also a Rmb150m domestic unrated tranche with no specific coupon.

Bookbuilding will be done on Friday.

The offering marks the return of the originator after doing its first ABS trade in a Rmb2bn print in January 2008 and a Rmb2bn issue in October 2012.

Some people see the deal as the start of regular ABS issuance after several rounds of an ABS pilot scheme.

The expected maturity on Tranche A is July 26 2016, or 0.78 years, and that on Tranche B, is November 26 2016, or 1.88 years. Settlement date will be October 29.

Lianhe and China Credit have both assigned ratings of AAA to the tranche A and AA+ for the B tranche.

Citic Securities is the joint lead manager and bookrunner with the help of ICBC and China Merchants Bank. Cofco Trust will act as trustee. Legal maturity is September 26, 2020.

The securities are backed against 58,460 car loans. The weighted-average interest rate was 13.89% for a weighted-average remaining tenor of 27.90 months.

The GMAC-SAIC issuance will come via a special-purpose trust to be called Tong Yuan Auto Loan Backed Securities SPT 2014-1.

GMAC-SAIC is a 60:40 joint venture that General Motors Acceptance Corp and Shanghai Automotive Industry formed in 2004.