Advising on a multi-stage securitisation tap programme

• Hong Kong

17-11-2020

Eversheds Sutherland advises Siegfried Service Limited, and acts as transaction counsel, on a US$1bn securitisation tap programme

Eversheds Sutherland’s Hong Kong structured finance team has advised Siegfried Service Limited (Siegfried), and acted as transaction counsel, on a US$1 bn trade receivables securitisation tap programme. The trade obligors are high-end consumer and retail brands from across the US and Europe.

The first stage of the transaction funded in September, 2020, with the second stage in October, 2020. Further note issuances under the programme are likely in the coming months.

Tap programmes are generally seen in Medium Term Note bond issuances. It is less common for them to be used to securitise trade receivables. A tap programme allows the issuer to make the notes available to investors when market conditions are most favourable, while minimising transactional and other costs.

The Eversheds Sutherland team was led by Kingsley Ong, Head of Structured Finance, Asia, who was supported by Of Counsel Simon Barrell, and Associates Polly Chiu and Hinny Leung.

Kingsley commented on the transaction:

“Global and regional supply chains have been impacted by a number of significant events, including the US-China trade war and associated trade negotiations, the COVID-19 pandemic and the US presidential election. 

“In this challenging environment, securitisation is an attractive way to fund international trade transactions and facilitate supply chain management.

“The securitisation tap programme gives Siegfried increased flexibility, together with liquidity and credit enhancement, enabling them to go to market faster and execute trades. In a volatile and competitive environment, speed is a vital advantage.  

“It was a pleasure to work with Siegfried and Fasanara, and we congratulate them on the success of this innovative transaction.”

Fasanara Capital Ltd was the arranger and note trustee

Citicorp International Limited was the registrar, principal paying agent and transfer agent

Ogier advised on Cayman law

Tiang & Partners advised Citicorp International Limited

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