An asset-backed securitization of equipment leases out of South Africa is currently being touted in a road show to investors and is scheduled to be priced within the next few weeks, say ABS officials. J.P. Morgan Securities is the lead manager on the R630 million deal, called Fintech. This is J.P. Morgan's first South African ABS deal, although the market is still in its developing stages--only R5.5 billion in South African ABS deals have been issued to date. Fintech will be the fifth deal originated in South Africa and the second this year.
Rand Merchant Bank is the dominant ABS player in the fledgling South African ABS market, having completed three out of the four deals executed to date. Based in Johannesburg, RMB is seeking to bring a few additional deals to market in the coming months and is weighing the possibility of a conduit program, says Grant Scott, a member of RMB's securitization team.