Dim sum market welcomes first ABS private placement

04 Jul 2013

Chinese clothing maker Eratat Lifestyle Limited has issued a Rmb134m ($21.7m) bond that was used to back what bankers think is the first asset-backed security issued in the dim sum market. It was a private placement sold on June 21, and allowed investors to lock in sizeable returns that would have been difficult to achieve from a public deal.

Eratat's bond was used to back the dim sum asset-backed security issued by SWAT Securitisation Fund, which is a vehicle managed by Sun Hung Kai Financial Limited (SHKF). The bond is divided into a senior tranche and a junior tranche with the latter having a 20% first loss ...

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