28/08/1993

Anglo launches 10-year Eurobond

DAILY TELEGRAPH By Ra Tickel

ANGLO Leasing, one of the leading providers of finance to the sales aid leasing market, yesterday launched the first securitisation in the UK market backed entirely by lease receivables, with a £165m 10-Eurobond secured on the future rentals of a portfolio of leases.

The bond is rated triple A by both major US credit agencies. Through an off-balance sheet company called Anglo Finance No. 1, Anglo Leasing offered bonds, securitised on around 60,000 of its 110,000 leases, which pay investors an interest margin of 0.55pc over the three month London interbank offered rate. The bonds are priced at £99.80.

The average life of the leases involved is 4½ years. Kit Hunter Gordon, director of Anglo Leasing, explained that leases are usually no longer than five years reflecting the speed of developments in capital equipment. Anglo Finance No1 has the right to issue a further tranche of notes up to the value of £82.5m over the next 12 months.