The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

South African securitization races ahead

South Africa’s securitization market has developed so rapidly that it has today reached a level of sophistication that the US and Europe took more than 20 years to achieve, according to consultancy firm Deloitte. And the emergence of bank balance-sheet transactions is set to keep bankers busy in coming months.

By Oonagh Leighton


Andre Pottas, Deloitte “I think that RMBS will dominate the market”
Andre Pottas, Deloitte

“The market has grown rapidly from inception in 2001 and we have seen a large number of asset classes securitized,” says Andre Pottas, lead partner at Deloitte. “This includes two synthetic CLOs, which were among the first transactions to come to market in South Africa. That is pretty unusual.”

A backdrop of economic and political stability, combined with prudential supervision, has encouraged issuers and investors to embrace the market with enthusiasm.

Since 2000 more than €6.13 billion-worth of structured finance notes has been issued in the market, making South Africa the most prolific issuer of existing ABS instruments in EEMEA. This includes onshore and offshore transactions backed by various asset types.

A wide array of instruments have already been used, including RMBS, CMBS, synthetic CLOs, trade receivables, ABS conduits, retail in-store card receivables, vehicle finance receivables and pension-backed home loan securitizations.

This is combined with a broad base of issuers. Pottas says that SA Home Loans is the primary issuer, having launched five term securitizations (Thekwini 1-5).


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree