KARACHI, Sept 16: Trust Investment Bank Limited announced the completion of Rs100 million securitization of lease receivables pertaining to lease portfolio of Pakistan Industrial Leasing Corporation (which now stands merged into Trust Bank). The deal marks the completion of first ever securitization transaction in Pakistan.

A press release issued by Orix Investment Bank Pakistan Limited — one of the two advisers to the securitization, the other being AKD Securities (Pvt.) Limited — stated that The First Securitization Trust (FST) was the Special Purpose Vehicle (SPV) through which the securitization had been conducted. The press statement stated that all parties to the transaction appreciated the cooperation offered by the SECP. “They further mentioned that the State Bank of Pakistan was also considering guidelines for the securitization of receivables which when approved would enable the financial institutions to invest in SPVs.

Speaking at the signing ceremony, Ali Ansari, CEO of AKD Securities and Naim Farooqui, CEO of Orix Investment Bank stated that with the landmark transaction, doors were now open for Pakistan’s corporates to raise financing against future cash flows.

Rashid Ahmed, CEO of Trust Investment Bank — the originator, mentioned that securitization of his company’s lease receivables would usher in a new era for leasing business in Pakistan. National Discounting Services Ltd (NDSL), a subsidiary of the National Bank of Pakistan, is the trustee for the Asset Backed Certificates (ABCs) issued by the SPV.