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Sasfin Re-Engineers Securitisation Vehicle And Issues Positive Trading Update
Sasfin Holdings Limited
(Incorporated in the Republic of South Africa)
("Sasfin")
Share code: SFN
ISIN: ZAE000006565
The oldest active asset backed securitisation structure in South Africa has been
re-engineered to bring it in line with modern international standards.
Sasfin Bank pioneered securitisation in South Africa with the launch of Sasfin
Asset Securitisation (Pty) Ltd in 1991, the special purpose vehicle (SPV) used
to fund the origination of Sasfin"s equipment rental portfolio. The first
tranche was for R30 million of debentures - the programme size has since grown
to R670m.
In compliance with the new SARB regulations on securitisation, the name of the
SPV was changed to Equipment Rentals Securitisation No. 1 (Pty) Ltd (ERS) last
year. Use of securitisation structuring techniques ensures that there is a
clean transfer of assets, creating the required degree of bankruptcy remoteness
between the originator - Sasfin - and the issuer - ERS.
Earlier this year Sasfin Bank mandated Nedbank Corporate Capital Markets to
restructure ERS. The re-engineering exercise entailed redeeming the existing
unlisted debentures and issuing R670m of secured floating notes which have been
listed on the Bond Exchange of South Africa.
The debentures are all rated by international rating agency Fitch IBCA as
follows:
A debentures - R613m - "AAA (zaf)"
B debentures - R 44m - "A" (zaf)
C debentures - R 13m - "BBB" (zaf).
"Apart from the resultant reduction in funding costs, the structure is far more
flexible, which will allow Sasfin Bank to continue to grow its equipment rentals
division, which is the leader in the equipment rentals market," says Sasfin CEO
Roland Sassoon.
In addition to the positive SPV announcement, Sasfin has issued a Trading
Statement, reporting an expected improvement in the group"s interim results to
31 December 2003.
Sassoon says this is mainly as a result of improved margins, reduced overheads
and tighter controls. "It is expected that the interim results for the six
months to December 2003 will show a substantial improvement on the restated
unaudited results of the previous comparative period," he says. To comply with
AC133, the headline earnings of the previous period will be restated to R10,738
million from R0,715 million.
As the financial information on which the Trading Statement is based is
unreviewed and unaudited, it was accompanied by a Cautionary Announcement to
shareholders to exercise caution in dealing in the company"s securities until
publication of its interim results in February 2004.
Ends
ISSUED FOR : SASFIN HOLDINGS LIMITED
CONTACT : Roland Sassoon, CEO: 011 809 7778 Cell: 082 570 6051
FAX NO : 011 887 6167
E-MAIL : rsassoon@sasfin.com
WEBSITE : www.sasfin.com
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart 011 325 4195 Cell: 082 443 6399
FAX NO : 011 325 4199
E-MAIL : tish@tspr.co.za
DATE : 26 November 2003
Date: 26/11/2003 05:15:03 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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