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Country Writer: Mr. Norman
Menachem Feder
nmf@caspilaw.co.il
Telephone: + 972 3 796 1220
SECURITIZATION LAWYERS
AT THIS FIRM
FIRM PROFILE
Caspi & Co. is one of Israel's oldest and best-known
law firms. The firm maintains a vibrant domestic and international
practice and serves as regular outside counsel to a variety of major
corporations, financial institutions, investment groups, project
developers and governmental entities. The firm prides itself on
its deep experience in structured finance, advising extensively
on securitizations and over-the-counter derivatives. Firm partner
Norman Menachem Feder leads the structured finance practice and
has been appointed Israel’s first and sole representative
to An International Who’s Who of Securitisation Lawyers.
SECURITIZATION MARKET STATEMENT
In recent years, Israel has embraced many aspects
of structured finance. From derivatives to securitization, Israeli
companies have ventured into some of the world’s most challenging
financial territories.
The history of true securitization in Israel comprises two significant
transactions. In October 2001, Makhteshim Agan Industries engaged
in Israel's first significant securitization when it entered into
a revolving program to securitize up to $150 million of trade receivables
in the U.S. capital markets with Bank of America and Bank Leumi.
In December 2002, Israel Chemicals Ltd. and certain of its subsidiaries
in the United States, United Kingdom, Europe and Israel engaged
in Israel's most significant securitzation to date, entering into
a revolving program to securitize up to US$ 250 million of trade
receivables in the U.S. capital markets, again with Bank of America.
Domestically, some small local currency securitizations are reported
to have taken place, but the resultant securities are apparently
privately placed and not traded and some are said to have been structured
via secured loan, instead of true sale. Additionally, none are thought
to have been revolving.
Local capital markets are a logical consumer of shekel denominated
assets, particularly if long-term. Prime asset class candidates
for large local securitizations would be bank credit trade receivables.
To date, however, large full-scale securitizations in the domestic
markets have yet to appear.
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