Eversheds Sutherland’s structured finance team in Hong Kong advised Siegfried Service on a US$1 billion 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 was funded in September, with the second stage in October, and further note issuances under the programme likely in coming months.
Eversheds’ team was led by the head of structured finance in Asia, Kingsley Ong, with support from of counsel Simon Barrell, and associates Polly Chiu and Hinny Leung.
“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,” said Ong. “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.”
Tap programmes are generally seen in medium-term note bond issuances, and are less likely 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.
Fasanara Capital was the arranger and note trustee, while Citicorp International was the registrar, principal paying agent and transfer agent. Ogier advised on Cayman law, and Tiang & Partners advised Citicorp International.