Specialist banker Investec will this week launch one of two funding platforms, with a combined size of R4-billion, to fund a significant portion of the growth in advances expected by Investec Private Bank.
The securitisation funding platform will allow Investec to continue to offer clients superior service at competitive rates on certain banking products such as new home and car loans. An additional platform to be launched shortly by Investec’s treasury and specialised finance division will complement commercial property advances in a similar manner.
“The securitisation technology utilised in these structures represents international best practise and the auto-loan platform is the first of its kind in South Africa” said Louis Dirker from Investec treasury and specialised finance. “We believe securitisation accommodates competitive pricing for Investec’s funding requirements while allowing third-party investors an effective investment.”
Paul Hanley, head of Investec in South Africa said Investec has used securitisation techniques to fund a portion of its advances growth since 2002. “The funding platforms launched … not only allow Investec to continue to fund itself in this manner at economical rates for both home loans and auto loans, but are structured to allow a higher level of flexibility for the bank and our clients.”
“Instead of using the funding desk,” explained Dirker, “we are effectively borrowing money and lending it on to our clients in a manner that is competitive, more flexible and allows for risk mitigation.”
Both platforms are rated by Moody’s and have been well received by institutional investors. Dirker noted that feedback from the market has been positive.
“Investors are happy to be able to invest in these high-grade assets as they get direct exposure to underlying assets.” — I-Net Bridge