Press Release
Standard Chartered successfully closes Start V CLO
US$1b loan portfolio extended to more than 500 borrowers; majority in Asia and Middle East
Region: Greater China and Japan, Middle East & Pakistan, South East Asia Published by:
Li-Ling Soon
Date:
10 July 2008
Cash
Standard Chartered Bank has successfully completed its fifth Collateralised Loan Obligation (CLO) transaction, Start V CLO, under its multi-award winning Start CLO programme.
With this latest US$1.0 billion synthetic CLO, Standard Chartered has sold the credit risk of a diversified pool of loans extended to more than 500 borrowers with about 80 per cent of the borrowers domiciled in Asia and the Middle East. The average credit quality of the initial pool was BB.
Matthew Geason, Group Head of Portfolio Management, Standard Chartered Bank, said:
“START V CLO reaffirms our commitment to keeping distribution channels open throughout this challenging market environment. We believe that the pricing reflects investors’ ability to differentiate our balance sheet deals from other types of structured credit product. We continue to have confidence in our pricing discipline on the origination side of our business.
“The structure and the mechanics of the deal are relatively straightforward and this appeals to investors in the current environment.”
The Start V CLO transaction attracted a broad base of investors, both by geography and by type, consisting of approximately a dozen investors being issued the Start V CLO Notes (Notes). Of the total issue of the Notes, approximately 58% went to Asia, approximately 24% to the US, and approximately 18% to Europe. Approximately 76% of the Notes were issued to leveraged money accounts, approximately 12% of the Notes were issued to asset managers, and approximately 6% of the Notes were each issued to banks and insurance companies.
Standard Chartered Bank acted as Sole Arranger and Bookrunner for the Start V CLO transaction. Furthermore, Standard Chartered was Sole Manager for the Class C Notes. Standard Chartered and Royal Bank of Scotland acted as Joint Lead Managers for the Class A and Class B Notes. The Notes were distributed pursuant to the exemptions from registration provided by Regulation S and Rule 144A of the U.S. Securities Act of 1933, as amended.
Standard Chartered completed its first CLO, the US$2 billion Start CLO in November 2005, followed by US$1.6 billion Start II CLO in June 2006, US$1.5 billion Start III CLO in December 2006 and US$1.5 billion Start IV CLO in June 2007.
For further information please contact:
Li-Ling SOON
Corporate Affairs
Tel: +65 6427 5103 or +65 9648 3854
E-mail: Soon.Li-Ling@standardchartered.com
or
Corina BLUM-EVANS
Corporate Affairs
Tel: +44 20 7885 7261 or +44 78 8169 4437
E-mail: corina.blum-evans@standardchartered.com
Note to Editors:
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered PLC, listed on both the London Stock Exchange and the Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and the number of employees have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions.
Standard Chartered aspires to be the best international bank in its markets through leading by example to be the right partner for its stakeholders. The group now employs 73,000 people, representing 115 nationalities, in more than 1,700 branches and outlets located in over 70 countries. The bank derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East, with balanced income derived from both Wholesale and Consumer Banking.
The group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. For more information, please visit: www.standardchartered.com
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