MBNA sold a credit card securitization comprised exclusively of triple-B notes into the sterling market last week. The deal marks the first time a U.S. issuer has sold triple-B securitization denominated in sterling to non-U.S. investors. The £200 million deal was priced at 195 over gilts and lead-managed by Deutsche Bank.
Michael Raynes, head of European securitization at Deutsche Bank in London, expects more U.S. issuers to access the European market for their triple-B and subordinated notes going forward, thus demonstrating the market's strength.
MBNA generally issues deals into the sterling market twice a year. Until now, those deals have consisted solely of triple-A-rated paper. All these deals are backed by U.S. credit card collateral and issued out of MBNA's U.S. master note trust. MBNA chose to issue triple-Bs this time to further diversify its funding and investor base.
