The Kreditanstalt für Wiederaufbau-sponsored true sale initiative (TSI) should yield its debut deal in the first quarter, says Dieter Glüder, head of securitization in Frankfurt. The initiative, which involves 12 banks and is aimed at securitizing loans to small- and medium-sized enterprises on a cash basis through a single special purpose vehicle, could generate at least E10 billion in issuance next year, he estimates.
There still is quite a bit of work to be done on the initiative and representatives from the banks involved met recently to resolve a number of issues. In particular, legal questions relating to accounting guidelines and regulations, banking supervisory issues and also requirements by rating agencies need to be resolved. A decision on how to proceed with TSI should be made in the coming weeks.
Hypovereinsbank will be the first German bank to issue a cash SME loan securitization. The bank's E1.4 million Geldilux should be priced by year-end.