ICICI carries out largest securitisation deal

Biggest private sector lender ICICI Bank has carried out the country's largest rated securitisation transaction for an amount of Rs 1,929.9 crore (Rs 19.29 billion), backed by its new and old car loans.

The securities -- Pass Through Certificates, backed by the new and used car receivables, originated from ICICI Bank and have been issued by Indian Retail ABS Trust under the bank's securitisation programme.

Credit rating agency Crisil has assigned the high investment grade rating to these securities. The bank would assign the pool to the trust and will receive a purchase consideration equal to the pool's principal outstanding.

"Including the credit opinions assigned to the liquidity and second loss facilities, the rated amount of Rs 1,992.99

crore is the largest in any securitisation transaction in India," a Crisil statement said.

The total rated amount consists of a liquidity facility of Rs 76.65 crore (Rs 766.5 million) and a credit enhancement of Rs 77.75 crore (Rs 777.5 million).

The balance amount of Rs 1,837.6 crore (Rs 18.37 billion) is the loan amount, of which new car loan receivables comprise 81.6 per cent and used car loan receivables account for 18.4 per cent.

The pool has a weighted average season of 6.4 months and is well diversified. It is predominantly current with about 95 per cent of receivables coming from contracts that do not have any overdues on the cut-off date.