Citibank Places Cholamandalam Receivables

Cholamandalam Investment and Finance Company's securitised portfolio of receivables aggregating Rs 60.61 crore has been structured and placed with various investors by Citibank NA.

This has been done through a structure involving pass-through certificates (PTCs) of varying maturities.

Cholamandalam Investment and Finance Company Ltd is the financial services arm of the Rs 4,200 crore Murugappa group.

The securitisation issuance has a unique structure whereby the payouts on the PTCs are scheduled on a quarterly basis as against the pool cashflows being collected on a monthly basis.

Three series of PTCs rated A1+(structured obligation) /MAAA (structured obligation) were issued by Peoples Financial Services Ltd, acting as the special purpose vehicle to investors.

Credit enhancement was provided by a two tier structure of subordination and cash collateral, the company said in a statement.

Citibank acted as the sole arranger to the issue and Citicorp Brokerage Ltd acted as the distribution and placement agent.

The pricing achieved on the recently concluded issuance is the slowest for any commercial vehicle securitisation transaction to date.