Citibank arranges funding against Brac receivables securitisation
Citibank NA along with FMO of the Netherlands, Pubali Bank Limited and The City Bank Limited yesterday invested Tk 1.035 billion (US$15 million) in bonds issued by the special purpose vehicle (SPV) of Brac, formed for securitisation of its micro-credit receivables, says a press release.This groundbreaking transaction, denominated in Bangladesh taka, will provide an aggregate of Tk12.6 billion (US$180 million equivalent) of financing for Brac over a period of six years. Under the programme, taka equivalent to US$15 million is being disbursed every six months to Brac, with a maturity of one year. FMO has directly purchased one-third of the certificates. Citibank NA has purchased another one-third of the certificates, backed by a guarantee of FMO and counter guaranteed of KfW. Additionally, Citibank NA Bangladesh, with The City Bank Limited and Pubali Bank Limited have purchased the remaining one third of the certificates. Citibank NA Bangladesh (Citigroup), FMO (Netherlands), and KfW (Germany) are the co-lead arrangers. Citibank NA is also the account bank in the transaction, with Eastern Bank Limited as the trustee and RSA Capital being lead arranger for this transaction.
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