The private sector Garanti Bankasi plans to launch a credit card securitisation facility in November in the US and Europe with a face value of about $95 million-100 million, from which it hopes to raise about $65 million, banking sources say.
It is being drawn up with the assistance of New York’s Citicorp Securities. It will follow closure of syndication on 1 November for a separate, two- year $150 million loan for Garanti. The loan entered syndication on 18 November.
The paper securitising Garanti’s credit card receivables will be launched in two tranches, one in the US with a maturity of seven years and an average life of five years, and the other in Europe with a maturity of five years and an average life of three years.
The US tranche will carry a fixed interest rate probably in a range of 230-240 basis points over US treasuries, and the European tranche will carry a floating rate starting probably at between 210-230 basis points over the London interbank offered rate (Libor).