Deutsche Bank
Arranges ground-breaking USD750 million ABCP Programme through Arth
Capital Corp for Glencore
LONDON, 23 May, 2003 – Deutsche Bank today
announced the arrangement of a USD750 million ABCP securitisation
(the "Programme") for Glencore AG/Glencore International
AG through Arth Capital Corp., which was signed on 29 April 2003.
Arth is a stand-alone ABCP conduit which will issue
A-1+/P-1 rated USD CP to finance the purchase and holding by Base
Metals Finance Company Limited (a Jersey-based special purpose company)
of inventories of certain unalloyed base metals (Aluminium, Copper,
Nickel, Zinc and Lead) held in Western European and Singaporean
warehouses.
Due diligence reviews and other conditions precedent
mean that the Programme is not expected to start funding until June
2003.
Glencore is a leading, privately-held and diversified
natural resources group with world-wide activity encompassing the
smelting, refining, mining, processing, purchasing, selling and
marketing of metals and minerals, energy products and agricultural
products.
Securitisation fits well in Glencore’s diversified
financing strategy. This Programme represents Glencore's second
securitisation. Their hybrid MTN/CP trade receivables securitisation
(Energy & Metals Finance/Albis Capital Corp) was completed in
2000. Energy & Metals Finance was lead managed by Deutsche Bank.
Seth Vance, Managing Director in Deutsche Bank's
Securitised Products Group, said "This ground-breaking transaction
is a first in the securitisation market, focussing on multi-jurisdictional
base metal inventories. It also has many innovative features relating
to liquidity and hedging which makes for a flexible structure which
can be accommodated within Glencore's existing business procedures.
We worked on this new asset class with a strong and experienced
team in Glencore and also very closely with Freshfields as transaction
counsel, as well as the rating agencies."
See related story from Freshfields
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