Financity Corporation structured the first trade receivable securitization in the Colombian market, sized at $19.4 million, the financing company said today in a press release.
The deal, which was issued by the Colombian textile producer, Coltejer S.A. ; was well oversubscribed and increased its triple-A rated note to $12.2 million from the pre-agreed minimum amount of $11bn. The issue was placed in the Colombian capital markets on October 10th.
The revolving program has a five-year term and is structured with risk mitigants such as an overcollateralization with respect to the size of the deal, a trust managed by Alianza Fiduciaria and daily reporting of Coltejer’s commercial invoice portfolio as part of Finacity’s role as master servicer.
“This new structure now offers an innovative financing alternative to companies in the commercial and industrial sectors of Colombia, taking advantage of techniques which have so far been successful in Europe, the USA and Mexico,” said Adrian Katz, CEO of Finacity.