First Commercial Bank has closed Taiwan's first mortgage securitization, raising hopes that a richer pipeline of deals may at last be on the way. Issued through the First Commercial Bank 2003 special purpose trust, the offer will raise a total of NT$4.28 billion $130 million.
The deal, which is arranged by Deutsche Bank, packages together a substantial number of residential mortgages for private sale to qualified investors in three tranches of trust certificates, plus a subordinated tranche of undisclosed value picked up by the originator. All the notes offer a floating rate coupon tied to the value of local adjustable rate mortgages ARMs.
The class-A notes will...
