Summary
ABS is a set of procedures where a SPC (Special Purpose Company)
issues asset back securities based on the underlying assets transferred
from holders of asset (financial institutions or corporate) and pays
principal and interest or dividend by income generated from administration,
management and disposal or borrowings.
Product Background
- Need of improvement in financial structure (Balance off)
- - To create liquidity in advance due to duration mismatch of assets and liabilities (ALM Effect)
- - To diversify funding sources
- - To enhance equity capital ratio by sale of risk assets, etc.
Expected Benefit
- - Raise funds at a comparatively lower cost by designing the customized structure
- - Use it as an IR opportunity by taking advantage of the global network of Citigroup (Cross-border securitization)
- - Consulting service on improvement of financial structure
Advantages of Citibank Product
- - Raise required funds in a timely manner with diversified experience and expertise
- - Save funding cost by using the global network
Target Market
- Legal entities meeting the requirements of the Act on Asset Backed Securitization, Article 1, Paragraph 2
- > Financial institutions and public corporate
- > Legal entities with good credit standing
- - A legal entity registered at FSC and received investment grade (BBB- or better) from a credit rating agency for the past 1 year from the date of submission of Application for Asset Backed Securitization Program.
- - Listed company or KOSDAQ registered company (Admin issues and surveillance issues are excluded.)
- - Foreign companies meeting the equivalent requirements in their home countries.
Required Documents
- - Please consult the ABS team.
- - Separate agreement is required as a SPC is established every time.
