BEMO Securitization (BSEC) closed the Kettaneh Auto-Fund SIF, the first securitization transactions for F.A. Kettaneh, the exclusive importer of Audi, Volkswagen, and Skoda cars. The Auto-Fund has been approved by the Capital Markets Authority (CMA). The transaction is structured, arranged and managed by BSEC. The transaction was composed of securitizing a portfolio of auto loans to Kettaneh’s clients, including car rental companies, corporate clients, the company’s employees, and their dependents. The Kettaneh Auto-Fund was established as a securitization investment fund and issued 2 classes of notes: Senior class “A” Notes and Subordinate class “B” Notes. The notes of class “A” have an expected weighted average life of 3.75Y and subscribed by banks. On the other hand, class “B” notes are held by Kettaneh, which cover potential losses in the loan portfolios. This structure provides protection to class “A” Note holders, under several credit enhancements. BSEC is a financial institution specialized in structured finance and a wholly-owned subsidiary of BEMO Bank.
|Lebanese joint-stock company|
|Established in 1993 under Lebanese law|
|Registered in Beirut|
|Regulated by Central Bank of Lebanon|
Source: BSEC Website, BLOMINVEST Research Department