Sundaram BNP Paribas Home Finance Limited

April 25, 2014
Mumbai

CRISIL assigns ‘CRISIL AAA (SO)’ for Sundaram BNP Paribas Home Finance Limited’s securitisation transaction

Details Yield Terms Issue Size (Rs. Million) Tenure (Months)^# Rating Credit-cum-Liquidity Enhancement (Rs. Million)^
Series A PTCs Floating^$ 1826.1 282 CRISIL AAA (SO) 127.8

^#Actual tenure will depend on the level of prepayments in the pool and the exercise of clean-up call option
^{^}Additionally, scheduled excess interest spread, amounting to around Rs.517.8 million (assuming zero prepayments), provides credit support to the PTCs
^$Linked to the prime lending rate of investor

CRISIL has assigned its ‘CRISIL AAA (SO)’ rating to the pass-through certificates (PTCs) issued by Santhanam Trust Series I , which are backed by the home loan receivables originated by Sundaram BNP Paribas Home Finance Ltd (SBNPPHFL; rated ‘CRISIL AA/FAA+/Stable/CRISIL A1+’). The rating is based on the credit quality of the pool cash flows, SBNPPHFL’s origination and servicing capabilities, the transaction’s credit-cum-liquidity enhancement and payment mechanism, and the soundness of the transaction’s legal structure.

The transaction has a ‘par’ structure. SBNPPHFL will assign the pool to Santhanam Trust Series I, managed by IL&FS Trust Company Limited, which will issue PTCs to the investors. The PTCs will be supported by the stipulated credit-cum- liquidity enhancement along with the excess interest spread.

About the Pool
The pool consists of home loan contracts with weighted average seasoning of 26.8 months. The pool is geographically concentrated, with the top three states together accounting for 95.0 per cent of the principal. All contracts in the pool are current on payments as on the pool cut-off date, with a weighted average loan-to-cost ratio of 61.9 per cent and ticket size of Rs.0.97 million. This is the first securitisation transaction originated by SBNPPHFL being rated by CRISIL.

About the Originator
Sundaram Home was promoted as Sundaram Home Finance Ltd in July 1999 by Sundaram Finance, with equity participation from International Finance Corporation (IFC), Washington, and the Netherlands Development Finance Company (FMO), the Netherlands. In 2006-07, Sundaram Finance acquired the equity stakes of IFC and FMO in Sundaram Home. In October 2007, Sundaram Finance sold 43 per cent stake in Sundaram Home to BNP Paribas Personal Finance (earlier known as Union de Crédit pour le Bâtiment), a wholly owned subsidiary of BNP Paribas. With a 50.1 per cent stake, Sundaram Finance remains Sundaram Home’s majority shareholder.

Sundaram Home reported a profit after tax of Rs.1.3 billion for 2012-13, against Rs.0.94 billion for the previous year. The company’s total housing finance portfolio outstanding was Rs.46.3 billion as on December 31, 2013 (Rs.35.6 billion as on December 31, 2012).

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Last updated: May, 2013

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April 25, 2014	http://www.crisil.com