Cajas Rurales Unidas is marketing the first public issue of asset-backed bonds from a Spanish lender in almost two years.
The bank, formed last year from the merger of Cajamar Caja Rural and Caja Rural del Mediterraneo, includes 175 million euros ($224 million) of A1 notes, according to a statement from DBRS Inc., which is rating the deal. Those securities may be priced to yield in the low 300 basis-point area more than the one-month interpolated midswaps rate, said three people with knowledge of the deal who asked not to be identified before it’s completed.
The nation’s last asset-backed bond sale was in June 2011 when Volkswagen AG issued 570 million euros of bonds backed by Spanish car loans, Barclays Plc data show. The new transaction will be known as IM Cajamar Empresas 5, FTA.
“The deal will be a good indicator about the investor mood on securitizations from peripheral countries,” said Dipesh Mehta, a London-based analyst at Barclays.
JPMorgan Chase & Co. is arranging the transaction for Almeria-based Cajas Rurales Unidas, said the people.
An official at the bank, who asked not to be identified because of company policy, confirmed the marketing of the transaction without providing details