AyT Cédulas Territoriales Issues € 1.4 Billion Covered Bond
AyT Cédulas Territoriales (AyT) is launching a covered bond issue with a size of € 1.4 billion. The five-year covered bond, which matures on October 24, 2008, carries a coupon of 3.75% and is collateralised by a pool of Spanish public sector loans (Cédulas Territoriales). The reoffer price is 99.821%, giving a reoffer yield of 3.790% and a spread of mid-swaps + 5 basis points, i.e. 18.8 basis points above the 3.5% Bund due on October 10, 2008. Payment date is October 24, 2003. Joint lead managers are WestLB AG, Citibank, Deutsche Bank and Société Générale. The issue will be listed on the Madrid and Luxembourg Stock Exchanges.
Legally investors receive an ABS, backed by a pool of Cédulas Territoriales. The Joint Cédulas are issued by a fund set up under Spanish securitisation law which is the largest of its kind in Spain. AyT is controlled by the Comisión Nacional del Mercado de Valores.