5 February, 2020
On 5 December 2019, Linklaters advised BNP Paribas, acting through its Hong Kong branch, as sole arranger and lead manager, and Standard Chartered Bank (Hong Kong) Limited as swap counterparty, on PrimeCredit Limited’s inaugural issuance of US$200m asset-backed securities. This is the first public consumer loan asset-backed securities issuance in Hong Kong SAR and the first Triple A rated personal loan securitisation in Asia ex-Japan.
This debut transaction was conducted through Ocean Funding 2019-1 and secured by consumer loans originated by PrimeCredit Limited, a leading consumer finance provider in Hong Kong SAR focusing on origination of personal loans and credit cards. The securities are listed on the Singapore Exchange Limited (SGX) and are rated AAA (sf) by S&P Global Ratings Hong Kong Limited.
Linklaters’ leading derivatives, structured finance and securitisation team work on the most innovative, market-leading transactions, delivering solutions for structurally complex deals that help clients navigate the ever-changing nature of financial regulation and markets in Asia.
This transaction was led by partners Karen Lam and Victor Wan acting for the sole arranger and lead manager, with support from managing associate Li Ling Tan. Partner Stephen Song acted as legal adviser to the swap counterparty, with support from managing associate Jasmine Chua.
Capital Markets partner Karen Lam, commented:
“We recognise the importance of the transaction to PrimeCredit in opening up a new source of funding, and to the development of the wider securitisation market in Hong Kong SAR and other parts of Asia. We are proud to have supported PrimeCredit, BNP Paribas and Standard Chartered Bank in this inaugural transaction, which we hope will set a benchmark for future securitisation issuances in the region. The successful landmark issuance for PrimeCredit marks us out as the leading international law firm specialising in complex securitisation and structured finance transactions.”
