[ Main contents start here ]

Securitization

What is Securitization?

Securitization is a sales of assets from our client (the "Seller"), typically to a bankruptcy-remote SPV which is funded by MUFG Bank or its ABCP Conduits. Our customers may achieve a cost-efficient funding and other various benefits with Securitization solutions.

Key Benefits of Securitization

  • Typically a cost-efficient funding
  • Diversification of funding sources (e.g. financing based on receivables instead of corporate borrowing)
  • Accelerated monetization of assets and improved cash conversion cycle
  • Potential off-balance sheet treatment*

* Note: MUFG Bank does not provide accounting advise. The Seller needs to consult with its own accountants and/or auditors for accounting treatment of each transaction.
 

Opportunities

Securitization will be suitable for customers who have a diversified pool of receivables, with no major concentration against specific obligors. The required level of diversification will depend on the asset class. If the portfolio is not sufficiently diversified, MUFG Bank can offer alternative solutions such as Account Receivables Purchase Scheme ("ARPS").

MUFG Bank's Strength

MUFG Bank has been very active in providing receivables financing to our key relationship customers for decades. MUFG Bank has track records in securitizing various asset classes: trade receivables, auto loan &  lease receivables, utility receivables, healthcare receivables, airtime & handset receivables, credit card receivables and also other esoteric asset classes. MUFG Bank has a global franchise in the US, EMEA and APAC including Japan. We have extensive experience in executing Securitization transactions in all major jurisdictions.

TOP