The U.K. corporate securitization sector could see a healthy flow of issuance this year, London-based officials say. They point to a clutch of recent issues from corporates’ asset-backed bond vehicles as a positive sign for the market.
Gatwick Funding, the ABS vehicle of Gatwick Airport, rolled out a dual bond issuance comprising two £300 million (£467.8 million) tranches earlier this month. That deal was followed swiftly by a EUR700 million ($909.1 million) corporate ABS from British Airport Authority’s BAA Funding program late last week.
“There has been a fair amount that’s come through in the first few weeks of the year,” James Martin, whole business securitization analyst at Barclays Capital in London, told SI Tuesday. “Along with airports, we expect more infrastructure and housing association deals in the next few months.”
The Gatwick issue was used to partly refinance an existing debt facility with the £600 million ($936 million) bond issue. The EUR50 billion ($64.9 million) BAA Funding vehicle meanwhile issues both bank debt and securitization bonds in multiple currencies, providing ongoing funding of BAA assets including Heathrow and Stansted airports near....