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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (394)	3/15/2000 10:46:00 PM
From: Mohan Marette	Respond to of 494

Chase may enter securitisation Gayatri Nayak 15 MARCH -ET THE Chase Manhattan Bank is planning to get into the securitisation market in India by assisting corporates to structure and fund deals for securitisation of receivables. Speaking to ET, Paul Burke, vice-president and head of global securitised finance, Asia, said that Chase is in talks with corporates and financial institutions to provide new securitisation structures and will focus on securitising dollar based financial assets. "We are focusing on the Indian market after our success in Korea, and China which did not enjoy a favourable rating when we structured the deals. Our experience in these countries will therefore be very useful in India which still does not enjoy an investment grade rating " Mr Burke said He added that Chase would focus on structuring the deals and arranging funds. " Our expertise will lie in our ability to bring international investors to the Indian market." Mr Burke said. One of the positive developments in securitisation is the recent report by the Reserve Bank of India (RBI) on securitisation where a panel set up by the central bank has recommended guidelines after studying legislation in the US and other Asian markets. The report published in December '99 gives broad directions to the asset backed securitisation (ABS) market and also addresses some issues on legislation for the ABS market. " The study, which is a positive step, has paved the way for the further development of the ABS market." Mr Burke said Mr Burke said that Chase is bullish on India despite an underdeveloped corporate securities market which he said represents a challenge for ABS. Chase believes that potential issuers need to be educated for the market to develop. Securitisation depends on how well developed the back up systems are, for example systems should be able to track the performance of a pool of assets and Indians are capable of building such systems. The deals structured by Chase in Asia include a $106m securitisation of dollar loans due to the Industrial Bank of Korea. The bank has also assisted in the securitisation of future freight earnings of Chinese Shipping Corporation (Cosco) of $235 mil which will serve as a model for securitisation of export receivables for the Indian markets. The bank has also helped Daewoo Motor raise an equivalent of $190 mil by securitising its auto loan receivables and placing them with investment trust companies in Korea.