BSEC has structured and arranged the first Auto-Backed Sukuk deal in the MENA/GCC region
BSEC - Bemo Securitisation (February 23, 2004)
The Deal
BSEC has structured and arranged the first Auto-Backed Sukuk deal in the MENA/GCC region. The 3-year maturity transaction offers the Islamic investors 6% return paid on a monthly basis. The transaction has a total size of SR102 Million and is backed by a pool of vehicles and lease agreements sold by HANCO Rent A Car, one of Saudi Arabia's leading car leasing and rental companies. BSEC worked with key advisors on the structuring of the two-tiered transaction. Baker & McKenzie acted as legal counsel for saudi law, Voisin & Co as Jersey counsel and Volaw Trust as Trustee. Shariah compliance was provided by Yasaar Limited UK.
What's Special About this Deal
The CARAVAN I Sukuk has several structuring and credit enhancement features: A two-tier two-jurisdiction structure with 15.39% overcollateralisation, 4.25% equity tranche and 8.77% cash reserves. The structure also benefits from embedded early warning triggers mitigating its performance risk.
Transaction Name: CARAVAN I
Asset Class: Inventory Fleet Securitisation
Geographic Location: Jersey Island
For more information contact: Roula Sleiman, 961-1-200609
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