Monday 9 August 2010

Dubai bank's deal resurrects securitisation

Abandoned cars may have become a potent symbol of Dubai’s shift from boom to bust, but Emirates NBD has successfully sold a bundle of auto loans to Japanese investors, a move that could have significance well beyond the Middle East.

The Y24bn ($280m) asset-backed security (ABS) issued by Emirates NBD, based on about 22,000 car loans in the emirate, will formally close on Tuesday, and will be one of the first securitisation deals in emerging markets since the financial crisis.

Analysts say it could encourage more securitisation in the region, which has not seen any transactions since the $1.1bn Sun Finance vehicle issued by Sorouh Real Estate in Abu Dhabi in August 2008.

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